Relative Effectiveness of Monetary and Fiscal Policies on Economic Growth in Ethiopia: Vector Autoregression Approach
| dc.contributor.advisor | Hussien, Hamda (Dr.) | |
| dc.contributor.author | Teweldebrehan, Tesfay Gebremedhin | |
| dc.date.accessioned | 2021-02-21T12:51:17Z | |
| dc.date.accessioned | 2023-11-04T10:28:30Z | |
| dc.date.available | 2021-02-21T12:51:17Z | |
| dc.date.available | 2023-11-04T10:28:30Z | |
| dc.date.issued | 2010-06 | |
| dc.description.abstract | The study empirically investigates the retative effectiveness of fiscal and monetary policies on economic growth in Ethiopia. With the objective of finding out the relative strength of monetary and fiscat policies on economic growth, the study used an unrestricted vector autoregressions (V ARs) framework, based on the St. Louis equation, to compute variance decompositions (VOCs) and impulse response functions (lRFs) . Neither government expenditure nor money supply (M2) was found to be statistically significant in the cO-integrating equations estimated suggesting that the policy variables are neutral in the long run . The results derived from the VOCs and IRFs imply that monetary policy alone has a significantfy positive impact on GOP growth in Ethiopia However, the impact of fiscal policy on GOP growth remains broadly insignificant. The outcome of this study, thus, supports the views of the proponents of the St. Louis Modet th at monetary policy is retatively more effective than fiscal policy in stimulating economic activity. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/25172 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U | en_US |
| dc.subject | Fiscal Policies on Economic Growth in Ethiopia | en_US |
| dc.title | Relative Effectiveness of Monetary and Fiscal Policies on Economic Growth in Ethiopia: Vector Autoregression Approach | en_US |
| dc.type | Thesis | en_US |