Inflation, exchange rate, and economic growth in Ethiopia: A time series analysis

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60460709%3A41110%2F24%3A100820" target="_blank" >RIV/60460709:41110/24:100820 - isvavai.cz</a>

Alternative codes found

RIV/71226401:_____/24:N0100996

Result on the web

<a href="https://doi.org/10.1016/j.iref.2024.103561" target="_blank" >https://doi.org/10.1016/j.iref.2024.103561</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.iref.2024.103561" target="_blank" >10.1016/j.iref.2024.103561</a>

Result language

angličtina

Original language name

Inflation, exchange rate, and economic growth in Ethiopia: A time series analysis

Original language description

This study aims to investigate the dynamic relationship between inflation, exchange rate, and economic growth in Ethiopia for the period 1991-2020. This is because of rampant inflation, continuously devalued domestic currency, and the declining growth rate of the country due to violent conflicts. The study uses the ARDL model for short-run and long-run dynamics, the Bound test of co-integration to confirm if the target variables go together or not, and Granger causality tests are performed to detect dynamic effects. The ARDL model estimates suggested that inflation and exchange rate are negatively related to economic growth. This implies that an increase in the price level reduces the production of goods and services, while devaluation has a negative impact by reducing imports of intermediate goods. Thus, increasing domestic resource mobilization, improving regulatory quality, and deepening the financial sector can be viewed as solutions to decrease chronic foreign exchange shortages, lower inflation, and boost economic growth rates.

Czech name

—

Czech description

—

Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

—

OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

International Review of Economics & Finance

ISSN

1059-0560

e-ISSN

1059-0560

Volume of the periodical

96

Issue of the periodical within the volume

NOV 2024

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

—

UT code for WoS article

001321110800001

EID of the result in the Scopus database

2-s2.0-85204084877