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The Role Of Exports In Economic Growth With Reference To Ethiopian Country

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  • Chemeda, Faye Ensermu

Abstract

This study applies the Cobb-Douglas function model to analyze the effects of exports on economic growth in context of Ethiopian economy. To determine the relationship between export and economic growth, an attempt will be made to use econometrics techniques of analysis (co-integration system) by using the RATS software package for the time series data from 1950 to 1986. The lack of capital stock data is overcome by using the ratio of real investment to real gross domestic product (I/Y), in a place of capital stock while lack of labour force data is overcome by using the real gross domestic product per capita. The results suggest that the real export and (I/Y) are co-integrated with real GDP per capita. These results of the findings support the idea that the rate of growth of real exports has a positive effect on the rate of economic growth in context of the Ethiopian economy. Even strong positive relationship exists between real export and real growth domestic product per capita in long run rather than in short run when it is compared real exports with that of (I/Y). Thus, the contribution of real exports to economic growth in context of Ethiopian economy is greater in long run than in short run.

Suggested Citation

  • Chemeda, Faye Ensermu, 2001. "The Role Of Exports In Economic Growth With Reference To Ethiopian Country," 2001 Annual meeting, August 5-8, Chicago, IL 20569, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea01:20569
    DOI: 10.22004/ag.econ.20569
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    References listed on IDEAS

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    1. Engle, Robert F. & Yoo, Byung Sam, 1987. "Forecasting and testing in co-integrated systems," Journal of Econometrics, Elsevier, vol. 35(1), pages 143-159, May.
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    1. Shivneil Kumar Raj & Priteshni Pratibha Chand, 2017. "Analysis of Fiji’s Export and Its Impact on Economic Growth," International Journal of Business and Social Research, LAR Center Press, vol. 7(4), pages 1-14, April.
    2. HOSEIN, Roger & DEONANAN, Regan & EVANS, Kimbert, 2019. "Foreign Direct Investment, Exports and Economic Growth in SIDS: Evidence from Saint Lucia," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 72(1), pages 47-76.
    3. Njimanted, Godfrey Forgha & Nkwetta Ajong Aquilas, 2015. "The Impact of Timber Exports on Economic Growth in Cameroon: An Econometric Investigation," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 3(3), pages 46-60, September.
    4. Shivneil Kumar Raj & Priteshni Pratibha Chand, 2017. "Analysis of Fiji’s Export and Its Impact on Economic Growth," International Journal of Business and Social Research, MIR Center for Socio-Economic Research, vol. 7(4), pages 1-14, April.
    5. Abrar ul haq, Muhammd, 2015. "Agricultural Export and Economic Growth: A Case Study of Pakistan," MPRA Paper 67249, University Library of Munich, Germany, revised 2015.

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