Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach

Zekarias Bassa

doi:doi:10.11648/j.rd.20230403.14

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Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach

Zekarias Bassa

Published in Research & Development (Volume 4, Issue 3)

Received: 17 March 2023 Accepted: 1 August 2023 Published: 17 August 2023

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Abstract

The agricultural and export performance of the country determine the Economic growth in Ethiopia. However, Agricultural export performance, granger causality with GDP, labor and capital, the short run and long run dynamic relationship among the variables is not well studied, documented and updated. Therefore, the study aimed to examine influence of agriculture, trade, labour and capital to the economic growth. The analytical procedure applied were Engle-Granger for causality, Johansen Approach for co-integration and error-correction model. The results indicated that in the long run Ethiopian economic growth defined as positive function of agricultural exports, imports and capital, while population negatively affect the growth. In the short run, lagged gross domestic product explained positively the economic growth, while the agricultural imports, capital and population size influenced negatively. The result implied that the correction in one period draws back to the other period at speed of 41%. Therefore, diversifications, adopting labor intensive industries and improvement in fixed capital formation were policy directions that can stimulate growth of Ethiopia Economy.

Published in	Research & Development (Volume 4, Issue 3)
DOI	10.11648/j.rd.20230403.14
Page(s)	90-101
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2023. Published by Science Publishing Group

Keywords

Agricultural Commodities, Export, Import, Economic Growth, Co Integration, Error Correction

References

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Zekarias Bassa. (2023). Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach. Research & Development, 4(3), 90-101. https://doi.org/10.11648/j.rd.20230403.14

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ACS Style

Zekarias Bassa. Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach. Res. Dev. 2023, 4(3), 90-101. doi: 10.11648/j.rd.20230403.14

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AMA Style

Zekarias Bassa. Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach. Res Dev. 2023;4(3):90-101. doi: 10.11648/j.rd.20230403.14

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@article{10.11648/j.rd.20230403.14,
  author = {Zekarias Bassa},
  title = {Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach},
  journal = {Research & Development},
  volume = {4},
  number = {3},
  pages = {90-101},
  doi = {10.11648/j.rd.20230403.14},
  url = {https://doi.org/10.11648/j.rd.20230403.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.rd.20230403.14},
  abstract = {The agricultural and export performance of the country determine the Economic growth in Ethiopia. However, Agricultural export performance, granger causality with GDP, labor and capital, the short run and long run dynamic relationship among the variables is not well studied, documented and updated. Therefore, the study aimed to examine influence of agriculture, trade, labour and capital to the economic growth. The analytical procedure applied were Engle-Granger for causality, Johansen Approach for co-integration and error-correction model. The results indicated that in the long run Ethiopian economic growth defined as positive function of agricultural exports, imports and capital, while population negatively affect the growth. In the short run, lagged gross domestic product explained positively the economic growth, while the agricultural imports, capital and population size influenced negatively. The result implied that the correction in one period draws back to the other period at speed of 41%. Therefore, diversifications, adopting labor intensive industries and improvement in fixed capital formation were policy directions that can stimulate growth of Ethiopia Economy.},
 year = {2023}
}

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TY  - JOUR
T1  - Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach
AU  - Zekarias Bassa
Y1  - 2023/08/17
PY  - 2023
N1  - https://doi.org/10.11648/j.rd.20230403.14
DO  - 10.11648/j.rd.20230403.14
T2  - Research & Development
JF  - Research & Development
JO  - Research & Development
SP  - 90
EP  - 101
PB  - Science Publishing Group
SN  - 2994-7057
UR  - https://doi.org/10.11648/j.rd.20230403.14
AB  - The agricultural and export performance of the country determine the Economic growth in Ethiopia. However, Agricultural export performance, granger causality with GDP, labor and capital, the short run and long run dynamic relationship among the variables is not well studied, documented and updated. Therefore, the study aimed to examine influence of agriculture, trade, labour and capital to the economic growth. The analytical procedure applied were Engle-Granger for causality, Johansen Approach for co-integration and error-correction model. The results indicated that in the long run Ethiopian economic growth defined as positive function of agricultural exports, imports and capital, while population negatively affect the growth. In the short run, lagged gross domestic product explained positively the economic growth, while the agricultural imports, capital and population size influenced negatively. The result implied that the correction in one period draws back to the other period at speed of 41%. Therefore, diversifications, adopting labor intensive industries and improvement in fixed capital formation were policy directions that can stimulate growth of Ethiopia Economy.
VL  - 4
IS  - 3
ER  -

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Author Information

Zekarias Bassa

Southern Agricultural Research Institute, Areka Agricultural Research Centre, Wolaita, Ethiopia

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Zekarias Bassa. (2023). Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach. Research & Development, 4(3), 90-101. https://doi.org/10.11648/j.rd.20230403.14

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ACS Style

Zekarias Bassa. Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach. Res. Dev. 2023, 4(3), 90-101. doi: 10.11648/j.rd.20230403.14

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AMA Style

Zekarias Bassa. Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach. Res Dev. 2023;4(3):90-101. doi: 10.11648/j.rd.20230403.14

Copy | Download

@article{10.11648/j.rd.20230403.14,
  author = {Zekarias Bassa},
  title = {Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach},
  journal = {Research & Development},
  volume = {4},
  number = {3},
  pages = {90-101},
  doi = {10.11648/j.rd.20230403.14},
  url = {https://doi.org/10.11648/j.rd.20230403.14},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.rd.20230403.14},
  abstract = {The agricultural and export performance of the country determine the Economic growth in Ethiopia. However, Agricultural export performance, granger causality with GDP, labor and capital, the short run and long run dynamic relationship among the variables is not well studied, documented and updated. Therefore, the study aimed to examine influence of agriculture, trade, labour and capital to the economic growth. The analytical procedure applied were Engle-Granger for causality, Johansen Approach for co-integration and error-correction model. The results indicated that in the long run Ethiopian economic growth defined as positive function of agricultural exports, imports and capital, while population negatively affect the growth. In the short run, lagged gross domestic product explained positively the economic growth, while the agricultural imports, capital and population size influenced negatively. The result implied that the correction in one period draws back to the other period at speed of 41%. Therefore, diversifications, adopting labor intensive industries and improvement in fixed capital formation were policy directions that can stimulate growth of Ethiopia Economy.},
 year = {2023}
}

Copy | Download

TY  - JOUR
T1  - Export Performance of Agricultural, Food Commodities and Economic Growth in Ethiopia: Using Co-Integration Approach
AU  - Zekarias Bassa
Y1  - 2023/08/17
PY  - 2023
N1  - https://doi.org/10.11648/j.rd.20230403.14
DO  - 10.11648/j.rd.20230403.14
T2  - Research & Development
JF  - Research & Development
JO  - Research & Development
SP  - 90
EP  - 101
PB  - Science Publishing Group
SN  - 2994-7057
UR  - https://doi.org/10.11648/j.rd.20230403.14
AB  - The agricultural and export performance of the country determine the Economic growth in Ethiopia. However, Agricultural export performance, granger causality with GDP, labor and capital, the short run and long run dynamic relationship among the variables is not well studied, documented and updated. Therefore, the study aimed to examine influence of agriculture, trade, labour and capital to the economic growth. The analytical procedure applied were Engle-Granger for causality, Johansen Approach for co-integration and error-correction model. The results indicated that in the long run Ethiopian economic growth defined as positive function of agricultural exports, imports and capital, while population negatively affect the growth. In the short run, lagged gross domestic product explained positively the economic growth, while the agricultural imports, capital and population size influenced negatively. The result implied that the correction in one period draws back to the other period at speed of 41%. Therefore, diversifications, adopting labor intensive industries and improvement in fixed capital formation were policy directions that can stimulate growth of Ethiopia Economy.
VL  - 4
IS  - 3
ER  -

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