Fiscal Policy and Economic Growth: Empirical Evidence from Ethiopia
| dc.contributor.advisor | Girma, Estiphanos (Dr.) | |
| dc.contributor.author | Tewodros, Ayenew Wassie | |
| dc.date.accessioned | 2021-02-21T13:09:19Z | |
| dc.date.accessioned | 2023-11-04T10:28:31Z | |
| dc.date.available | 2021-02-21T13:09:19Z | |
| dc.date.available | 2023-11-04T10:28:31Z | |
| dc.date.issued | 2010-07 | |
| dc.description.abstract | The purpose of the paper is to exam ine the effect of fi scal policy variables on economiC growth in Ethiopia using annual data over the period 1960/61-2007/08. To ach ieve the stated obj ective "Barro type" growth model is estimated with the aid of cointegrated Vector autoregressive (V AR) and error correction modelling techn iques. This paper decomposes public spendi ng and revenues into various subcategories and estimates the impact of each of them on economic growth. The result SUppOlt growth neutral nature of nondistortionary taxes and total recurrent expenditures excluding health and education spending. Strong positive effect of human capital development expenditure was ascertained. There was evidence that shifting the government revenue source from distortionary taxation towards non di stortionalY taxes can enhance real per capita GDP. Government investment, on the other hand, revealed a short run beneficiary effect being unimportant in the long run. In light of this, the study proposes that in the quest for sustainable growth in Ethiopia, fiscal policy should be designed so that government expenditure is focused in increasing human capital development with limiting government investments in areas which are not complementary for the private sector. | en_US |
| dc.identifier.uri | http://etd.aau.edu.et/handle/123456789/25173 | |
| dc.language.iso | en | en_US |
| dc.publisher | A.A.U. | en_US |
| dc.subject | Fiscal Policy and Economic Growth | en_US |
| dc.subject | Empirical Evidence from Ethiopia | en_US |
| dc.title | Fiscal Policy and Economic Growth: Empirical Evidence from Ethiopia | en_US |
| dc.type | Thesis | en_US |