The Relationship Between Currency Devaluation and Trade Balance: Does Marshall-Lerner Condition Hold in Ethiopia? Evidence from Autoregressive Distributed Lag Model (Ardl
| dc.contributor.advisor | Jemberu Lulie (PhD) | |
| dc.contributor.author | Tesfaye Admit | |
| dc.date.accessioned | 2023-12-11T06:09:48Z | |
| dc.date.available | 2023-12-11T06:09:48Z | |
| dc.date.issued | 2023-06-03 | |
| dc.description.abstract | This study examines the relationship between currency depreciation and trade balance in Ethiopia, as well as whether the Marshall-lerner criteria hold in Ethiopia using an auto-regressive distributed lag (ARDL) model using yearly data from 1992 to 2022. The findings of the current study showed that currency devaluation deteriorate the short run and long run of Ethiopian trade balance. This study also incorporates other control variable like real domestic product, domestic inflation, trade openness and foreign exchange reserve along the actual effective exchange rate. The empirical conclusions thus, indicate trade balance and the factors that determine it have long-term substantial relationships except real domestic products .And in short run also significant relation-ships between trade balance and its determinant variable. The study's findings show that the Marshall-Lector conditions do not hold over the long run in Ethiopia. The government should encourage domestically product improvement, increase diversification of export sectors computing industries rather than currency devaluation to improve trade balance | |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/565 | |
| dc.language.iso | en | |
| dc.publisher | A.A,U. | |
| dc.subject | Domestic products, currency depreciation, trade balance | |
| dc.title | The Relationship Between Currency Devaluation and Trade Balance: Does Marshall-Lerner Condition Hold in Ethiopia? Evidence from Autoregressive Distributed Lag Model (Ardl | |
| dc.type | Thesis |