Volume 5, Issue 1, March 2020, Page: 6-13
Determinants of Recent Economic Growth in Ethiopia
Bulo Feyisa, Department of Economics, Jinka University, Jinka, Ethiopia
Tadele Feyera, Department of Economics, Addis Ababa University, Addis Ababa, Ethiopia
Received: Jan. 31, 2020;       Accepted: Mar. 11, 2020;       Published: Apr. 28, 2020
DOI: 10.11648/j.ijimse.20200501.12      View  55      Downloads  17
Abstract
This study tried to identify the major sources of recent economic growth in Ethiopia for the last thirty three years starting from the year 1980 up to 2013. The study has been under taken with the use of both econometric and descriptive analysis techniques and various diagnostic tests like stationary test (by using augmented dicky-fuller test), multicollinearity test by using vif test), heteroscedasticity test (by using Breusch-pagan test), omitted variable (by using ov-test) both in the lung-run and short-run effect of independent variables on dependent variable. In addition, tables, figures and graphs were used. The study employed time series data for both the dependent (RGDP) and independent variables. The explanatory variables including domestic investment, labor force growth, real effective exchange rate, remittance and corruption were investigated. The analysis is carried out through an extensive review of relevant literature and macroeconomic model of economic growth. The findings show that growth in Ethiopia is positively affected by domestic investment, labor force growth, and remittance. Therefore, the study recommended that increasing domestic investment through promoting public and private sectors, effective use of the growing labor force and proper use of remittance for capital formation and distribution over all sectors as the directions to achieve rapid and sustainable economic growth in Ethiopia.
Keywords
Economic Growth, Real GDP, Real Effective Exchange Rate, Ethiopia
To cite this article
Bulo Feyisa, Tadele Feyera, Determinants of Recent Economic Growth in Ethiopia, International Journal of Industrial and Manufacturing Systems Engineering. Vol. 5, No. 1, 2020, pp. 6-13. doi: 10.11648/j.ijimse.20200501.12
Copyright
Copyright © 2020 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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