Berhanu, Wassie (PhD)Getahun, Meseret2018-11-142023-11-042018-11-142023-11-042011-06http://etd.aau.edu.et/handle/123456789/14220International tourism is a major foreign exchange earner and a principal export for many low income countries as well as for developed countries. Now a day’s many developing countries focus on economic policies for promoting international tourism as a potential source of economic growth of the country. This paper has the objective to assess whether tourism has really promoted growth based on the tourism-led growth hypothesis (TLGH) using annual data covering the period 1981-2009 for Ethiopia. Diagnostic tests, namely Augmented Dickey-Fuller (ADF) for unit root and Johanson and Juselius (JJ) for co integration test are used. The findings of the study showed that there is a positive relationship between tourism and economic growth. The results of this study suggest that government should focus on economic policies to promote international tourism as a potential source of economic growth in Ethiopia.enEconomic Growth of EthiopiaThesis