International Journal of Industrial and Manufacturing Systems Engineering

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Determinants of Recent Economic Growth in Ethiopia

Received: 31 January 2020    Accepted: 11 March 2020    Published: 28 April 2020
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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.

DOI 10.11648/j.ijimse.20200501.12
Published in International Journal of Industrial and Manufacturing Systems Engineering (Volume 5, Issue 1, March 2020)
Page(s) 6-13
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Economic Growth, Real GDP, Real Effective Exchange Rate, Ethiopia

References
[1] Abelti Moti, (2010) “Determinant of Economic Growth”
[2] Alemeyew Geda, (2005): “Explaining African Growth Performance”: The case study of Ethiopia, Addis Ababa University.
[3] Barro Robert, (1996): “Determinants of Economic Growth”: A cross country empirical study, MIT presses.
[4] Seid Nuru (2000), “Determinants of Economic Growth in Ethiopia” Addis Ababa University. Mankiw G. (2007): Macroeconomics, New York worth publisher, six editions
[5] Petrakos G. et al (2007): Determinants of Economic Growth: the expertise view, Working paper
[6] Maddala G. (1982): Introduction to Econometrics, second edition, University of Florida and Ohioh state University, MacMillan, Canada
[7] Jhingan L. (1989): The Economics of Development and Planning, New York.
[8] Gujarati D. (2004): Basic Econometrics MC Grew-Hill/Irwin, New York.
[9] Romer, Paul M. (1996): Why Indeed America? Theory, History and Modern Economic Growth; NBER working paper series, No. 5443, National Bureau of Economic Research.
[10] Seyoum, (1997): Economic performance of Ethiopia (1972-1995): Growth Determinant and implication, Addis Ababa University.
Author Information
  • Department of Economics, Jinka University, Jinka, Ethiopia

  • Department of Economics, Addis Ababa University, Addis Ababa, Ethiopia

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  • APA Style

    Bulo Feyisa, Tadele Feyera. (2020). Determinants of Recent Economic Growth in Ethiopia. International Journal of Industrial and Manufacturing Systems Engineering, 5(1), 6-13. https://doi.org/10.11648/j.ijimse.20200501.12

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    ACS Style

    Bulo Feyisa; Tadele Feyera. Determinants of Recent Economic Growth in Ethiopia. Int. J. Ind. Manuf. Syst. Eng. 2020, 5(1), 6-13. doi: 10.11648/j.ijimse.20200501.12

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    AMA Style

    Bulo Feyisa, Tadele Feyera. Determinants of Recent Economic Growth in Ethiopia. Int J Ind Manuf Syst Eng. 2020;5(1):6-13. doi: 10.11648/j.ijimse.20200501.12

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  • @article{10.11648/j.ijimse.20200501.12,
      author = {Bulo Feyisa and Tadele Feyera},
      title = {Determinants of Recent Economic Growth in Ethiopia},
      journal = {International Journal of Industrial and Manufacturing Systems Engineering},
      volume = {5},
      number = {1},
      pages = {6-13},
      doi = {10.11648/j.ijimse.20200501.12},
      url = {https://doi.org/10.11648/j.ijimse.20200501.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.ijimse.20200501.12},
      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.},
     year = {2020}
    }
    

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  • TY  - JOUR
    T1  - Determinants of Recent Economic Growth in Ethiopia
    AU  - Bulo Feyisa
    AU  - Tadele Feyera
    Y1  - 2020/04/28
    PY  - 2020
    N1  - https://doi.org/10.11648/j.ijimse.20200501.12
    DO  - 10.11648/j.ijimse.20200501.12
    T2  - International Journal of Industrial and Manufacturing Systems Engineering
    JF  - International Journal of Industrial and Manufacturing Systems Engineering
    JO  - International Journal of Industrial and Manufacturing Systems Engineering
    SP  - 6
    EP  - 13
    PB  - Science Publishing Group
    SN  - 2575-3142
    UR  - https://doi.org/10.11648/j.ijimse.20200501.12
    AB  - 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.
    VL  - 5
    IS  - 1
    ER  - 

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