External Debt and Economic Growth in Ethiopia
No Thumbnail Available
Date
2002-07
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
This study uses a simultaneous equation approach to investigate the impact of external debt
on economic growth in Ethiopia using a macroeconometric model estimated for 1970-2000.
The empirical findings reveal that external debt does not affect growth directly. The results
indicate that external debt affects investment positively and is statistically significantly
indicating external debt in Ethiopian case encourage investment rather than depress it.
Furthermore, the result also confirms that there is no sign of crowding out effect through
which external debt is hypothesized to affect growth.
Description
Keywords
Debt and Economic Growth