The Relationship between Export and Economic Growth in Ethiopia

No Thumbnail Available

Date

2014-06

Journal Title

Journal ISSN

Volume Title

Publisher

Addis Ababa University

Abstract

The relationship between exports and economic growth has been a popular subject of debate among development economists. The aim of this paper is to test the relationship between export and economic growth in Ethiopian economy from 1975-76 to 2010/11. A bi-variate model is specified and estimated by using cointegration tests and error correction model. From the estimation of the specified model, we reported that there is a positive relationship between export and economic growth in the longrun and short run at 5 percent significance level and evidence in support of the export-led growth (ELG) hypothesis in that export growth has a causal influence on economic growth. From a policy perspective, the acceptance of the ELG hypothesis lends credence to the view of ‘outward orientation’ as an effective policy for economic growth.

Description

Keywords

Relationship between Export

Citation

Collections