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An Empirical Analysis of the Effects of Population Growth on Economic Growth in Ethiopia Using an Autoregressive Distributive Lag (ARDL) Model Approach

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  • Alemayehu Temesgen Befikadu

    (Ambo University)

Abstract

Between 1980 and 2020, the study looks at “An Empirical Analysis of the Effects of Population Growth on Economic Growth in Ethiopia Using an Autoregressive Distributive Lag (ARDL) Model Approach.” The appraisal coefficient of population growth (POP) is positive and significant, according to the findings of this study. However, in response to the long-term association between population expansion and economic growth in Ethiopia, the macroeconomic variables were subjected to a limit test and a broader causality test. From the finding of the bound test, since the value of F-statics is greater than the upper boundary line, there are long-run equilibrium relationships between RGDP, population size, foreign direct investment, personal remittance, population growth rate, rate of inflation, and gross capital formation. According to the findings of the Granger Causality Test, Real Gross Domestic Product can cause Ethiopian population size (POP), but population number (POP) cannot cause Real Gross Domestic Product at the same time. Finally, in order to boost Ethiopia’s economic growth, the government should implement policies that would attract foreign investors. The government should also establish a benchmark to ensure that the economy increases faster than the population.

Suggested Citation

  • Alemayehu Temesgen Befikadu, 2024. "An Empirical Analysis of the Effects of Population Growth on Economic Growth in Ethiopia Using an Autoregressive Distributive Lag (ARDL) Model Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(2), pages 8209-8230, June.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:2:d:10.1007_s13132-023-01403-9
    DOI: 10.1007/s13132-023-01403-9
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    References listed on IDEAS

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