The Effects of Foreign Direct Investment and International Trade on Ethiopian Economic Growth
| dc.contributor.advisor | Alem, Hagos (PhD) | |
| dc.contributor.author | Surafel, Getachew | |
| dc.date.accessioned | 2019-07-04T15:15:28Z | |
| dc.date.accessioned | 2023-11-04T09:03:23Z | |
| dc.date.available | 2019-07-04T15:15:28Z | |
| dc.date.available | 2023-11-04T09:03:23Z | |
| dc.date.issued | 2019-04 | |
| dc.description.abstract | Foreign direct investment and international trade are considered as essential factors in achieving sustainable economic growth. Most theories are in support of their positive influence on the economic growth of countries. However, empirical studies in this area have presented mixed findings. In the case of Ethiopia, limited number of studies have been conducted on the individual variables’ effects on economic growth. Thus, their findings are mostly mixed and inconclusive. In this regard, this study has been conducted with the aim of examining the effects of FDI and international trade on Ethiopian economic growth over the period 1992 to 2017. The autoregressive distributive lag model was employed to analyze the annual secondary data among the variables: real GDP growth, FDI, export, import, remittance, external debt and tax revenue. According to the results, FDI’s effect was positive but insignificant both in the short and long run. Exports have a positive and significant effect both in the short and long run. Imports have a negative effect both in the short and long run but are significant only in the long run. Remittance has a positive effect both in the short and long run but significant only in the long run. External debt has a negative and significant effect both in the long and short run. Tax revenue has a positive and significant effect both in the short and long run. Hence, from the findings, the Ethiopian government needs to carefully scrutinize its policies regarding FDI as its effect on economic growth is positive but insignificant. Exports are useful for economic growth of Ethiopia, hence, policies encouraging exports have to be put in place. However, policies towards import need to be controlling as the rise in imports is resulting in the widening of trade deficit. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/18640 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | ARDL | en_US |
| dc.subject | Economic Growth | en_US |
| dc.subject | International Trade | en_US |
| dc.title | The Effects of Foreign Direct Investment and International Trade on Ethiopian Economic Growth | en_US |
| dc.type | Thesis | en_US |