The Impact of Public Sector Borrowing on Economic Growth in Ethiopia

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This research was based on Debt Overhang Theory and Dual Gap Theory. This study adopted a descriptive research design; secondary data was collected in this study. The study used secondary data on external borrowing from the Ministry of Finance Ethiopia National Bureau of Statistics, and National Bank of Ethiopia, IMF website, world development indicators and World Bank data. The data was collected from 1991 to 2018, with GDP growth rate as a function of Public Debt. Data was analyzed using STATA version 14. This study is therefore an effort to determine the effect of Public Debt on Economic Growth in Ethiopia. Specifically, the study tries to answer the question Public external debt; Public domestic debt and debt servicing have any significant effect on Economic Growth. The study uses a linear regression model to analyze Ethiopian data from the economic years 1991 to 2018


A Research Project Submitted to Department of Accounting and Finance, Addis Ababa University in Partial Fulfillment of the Requirements for the Degree of Masters of Science in Accounting and Auditing


Ethiopia, Public Sector