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

  title={Macroeconomic determinants of external indebtedness of Ethiopia: ARDL approach to co-integration},
  author={S. Beyene and B. Kotosz},
  journal={Society and Economy},
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
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