Macroeconomic Determinants of External Debt Accumulation in Ethiopia: An ARDL Bound Testing Approach

Author:

Mulugeta Eyayu Tesfaye

Abstract

This study attempts to explore the major macroeconomic determinants of external debt stock growth in Ethiopia prompted by a continuous increase in government external borrowing over the period 1981-2018. For this purpose, the study employed the ARDL bound testing approach and all the necessary time series diagnostic tests were conducted. The long run model estimation result revealed that per capita GDP growth has a positive and significant effect on the country’s external debt stock. The result also revealed that the budget deficit and political instability put a significant upward pressure on the external debt stock growth of the country both in the short run and long run. Consistent with some existing empirical evidence, the study revealed negative and significant influence of openness and infrastructure development on the external debt stock growth. Consequently, the government should embark on prudent borrowing to achieve structural transformation.

Publisher

African - British Journals

Reference49 articles.

1. Ada,M. and Kharusi,S (2018) “External Debt and Economic Growth: The Case of Emerging Economy”, Journal of Economic Integration, Vol.33 No.1, March 2018, 1141~1157

2. Africa Development Bank (2018). “Federal Democratic Republic of Ethiopia Country Strategy Paper 2016-2020” EARC, Department.

3. Africa Economic Outlook (2018)“Report on Macroeconomic Performance and Prospects”, Africa Development Bank, Abidjan, Côte d'Ivoire.

4. Alemayehu Geda (2020) “The Macroeconomic and Social Impact of COVID-19 in Ethiopia and Suggested Direction for Policy Response”, Departemnent of Economics, Addis Ababa University

5. Alemayehu Geda and Daniel Zerfu, (1998) “profile of Ethiopian debt”, prepared for 8th annual conference on the Ethiopian economy, Addis Ababa, Ethiopia.

Cited by 2 articles. 订阅此论文施引文献 订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3