Macroeconomic determinants of external indebtedness of Ethiopia: ARDL approach to co-integration

@article{Beyene2020MacroeconomicDO,
  title={Macroeconomic determinants of external indebtedness of Ethiopia: ARDL approach to co-integration},
  author={S. Beyene and B. Kotosz},
  journal={Society and Economy},
  year={2020},
  volume={42},
  pages={313-332}
}
Although Ethiopia is one of the Heavily Indebted Poor Countries (HIPC), there is a lack of empirical studies about the determinants of its external indebtedness. This paper aims to fill this gap by examining the macroeconomic determinants of the external indebtedness of Ethiopia between 1981 and 2016, using the two- and three-gap models as a theoretical framework and an autoregressive distributed lag bound testing approach. The result shows that in the long run, the savings-investment gap… Expand
3 Citations
Testing the Ricardian equivalence hypothesis in the case of Ethiopia: An autoregressive-distributed lag approach
The Ricardian equivalence hypothesis (REH) suggests that when the government attempts to stimulate the economy by raising debt-financed government spending, consumption and demand do not increase butExpand
Empirical Evidence for the Impact of Environmental Quality on Life Expectancy in African Countries
TLDR
It is confirmed that, in the long run, improvements in environmental quality significantly increased life expectancy in the studied African countries during the study period, and the study recommends that the introduction of environmentally friendly economies, legal, socio-economic, demographic, and technological measures are essential to reduce environmental pollution and improve life expectancy. Expand

References

SHOWING 1-10 OF 32 REFERENCES
The External Debt Problem in Africa: A Comparative Study of Nigeria and Morocco
In this paper, the African external debt problem with particular reference to Nigeria and Morocco is extensively analysed, and statistical indicators show that it is severe and has adverse effects onExpand
Determinants of External Debt: The Case of Malaysia
Since the 1980’s, Malaysia’s external debt has been on an increase as a result of several economic factors, including two economic crises. Rapid increase in the external debt has become a nationalExpand
External debt among HIPCs in Africa: accounting and panel VAR analysis of some determinants
Purpose - The management of external debt among highly indebted poor countries (HIPCs) in Africa still remains a challenge despite numerous packages and attempts to ameliorate the consequences ofExpand
Macro-determinants of short-term foreign debt in Ghana
Abstract This study tests the validity of the hypothesis that the regulatory and macroeconomic environments and the disparity between domestic and international interest rates are importantExpand
Macroeconomic approach to external debt: the case of Nigeria
One of the greatest problems facing many Sub-Saharan African countries today is the amount of their external indebtedness. The external debt problem is becoming more acute for a number of reasons.Expand
On the Determinants of External Debt in Nigeria
This paper investigates the determinants of external debt in Nigeria from 1970 through 2013 using Autoregressive Distributed Lag (ARDL) approach. The empirical results indicate that oil price, debtExpand
Determining the Macroeconomic Factors of External Debt Accumulation in Nigeria: An ARDL Bound Test Approach
Abstract Nigeria is witnessing a continuous increase in external debt stocks despite a bitter three decades experience in this regard, resultant effects of high interest rates, low savings, weakExpand
Economic Policy Implications of External Debt and Capital Flight in Sub-Saharan Africa's Heavily Indebted Poor Countries
The paper analyses the impact of the simultaneous occurrence of external debt and capital flight on economic policy effectiveness in Heavily Indebted Poor Countries (HIPCs) in sub-Saharan Africa,Expand
Determinants of Government and External Debt: Evidence from the Young Democracies of South America
Abstract I investigate the main determinants of government and external debt in the young democracies of South America between 1970 and 2007. The results, based on dynamic panel time-series analysis,Expand
External Debt and Growth
This paper assesses the non linear impact of external debt on growth using a large panel data set of 93 developing countries over 1969–98. Results are generally robust across different econometricExpand
...
1
2
3
4
...