The Nexus between Financial Development and Economic Growth in Ethiopia
| dc.contributor.advisor | Berhanu, Habtamu (PhD) | |
| dc.contributor.author | Endris, Meron | |
| dc.date.accessioned | 2018-06-28T05:30:05Z | |
| dc.date.accessioned | 2023-11-08T14:37:12Z | |
| dc.date.available | 2018-06-28T05:30:05Z | |
| dc.date.available | 2023-11-08T14:37:12Z | |
| dc.date.issued | 2016-03 | |
| dc.description.abstract | The paper examined the empirical relationship between economic growth and financial development in Ethiopia over the period 1980–2014. The long-run and short-run parameters were estimated with a use of autoregressive distributed lag (ARDL) bounds testing approach for co integration analysis. To determine the direction of causality, Granger causality analysis was done. Empirical findings indicate,there is long-run associationbetween economic growth and proxy of financial deepening, broad money and private sector credit while proxy of financial widening, trade openness has positive significant relationship with economic growth but financial liberalization has negative significant association with economic growth. The overall result indicates economic growth has a significant positive effect on financial development. The magnitude of the ECT coefficient is -0.8545 justified about 85% of the disequilibrium annually converge towards long run equilibrium in the following year. The Granger causality testis consistent with the co-integration result indicating uni-directional causality between financial development and economic growth in Ethiopia for the period under study.The result supports demand following hypotheses;means that economic growth is leading to the financial sector development in Ethiopia. Hence, confirm the heavy hand of the government in the financial sector. Keywords: financial development, economic growth, ARDL bounds test, cointegration, granger causality | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/4306 | |
| dc.language.iso | en_US | en_US |
| dc.publisher | Addis Ababa University | en_US |
| dc.subject | Financial development | en_US |
| dc.subject | Economic growth | en_US |
| dc.subject | ARDL bounds test | en_US |
| dc.subject | Cointegration | en_US |
| dc.subject | Granger causality | en_US |
| dc.title | The Nexus between Financial Development and Economic Growth in Ethiopia | en_US |
| dc.type | Thesis | en_US |