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

Kód výsledku v 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>

Nalezeny alternativní kódy

RIV/71226401:_____/24:N0100996

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2024

Kód důvěrnosti údajů

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

Název periodika

International Review of Economics & Finance

ISSN

1059-0560

e-ISSN

1059-0560

Svazek periodika

96

Číslo periodika v rámci svazku

NOV 2024

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

14

Strana od-do

—

Kód UT WoS článku

001321110800001

EID výsledku v databázi Scopus

2-s2.0-85204084877