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Author : Frew Hailu
Publisher : Anchor Academic Publishing (aap_verlag)
Page : 113 pages
File Size : 43,6 Mb
Release : 2015
Category : Business & Economics
ISBN : 9783954893546
Author : Frew Hailu
Publisher : GRIN Verlag
Page : 112 pages
File Size : 55,9 Mb
Release : 2014-10-13
Category : Business & Economics
ISBN : 9783656766711
Master's Thesis from the year 2014 in the subject Economics - Finance, grade: 1 (A), Wollega University (wollega University), course: Development Economics, language: English, abstract: This study attempts to investigate the effect of government expenditure on private investment in Ethiopia over the period 1980-2012. The central question of this study is weather government expenditure has a positive or crowding in effect (complementary hypothesis) or a negative or crowding out effect (the substitutability hypothesis )on private investment in Ethiopia. To achieve its objective it adopted a modified flexible accelerator model to enlighten on the economic relationship between private investment and the other variables and used the modern technique of vector auto regressive model (VAR) and vector error correction model(VECM)as its methodology. The study also used the Johansen-Juselius (1990) cointegration analysis of a multivariate system of equation to estimate the long run relationship between government expenditure and private investment to determine the order of integration of the variable and Granger-Causality test was undertaken to determine causal relationship between the variables. In addition to this the study employs the Augmented Dicky-Fuller (ADF) unit root test and phillip perron test. The statistical tests reveal that all-time series data are non-stationary in their level and they become stationary after diffrencing.i.e.they are integrated of order one I(1).The johansen-juselius cointegration test shows that the series are cointegrated and then employs the vector error correction model moreover the study applies the impulse response function (IRF)and forecast error variance decomposition (FEVD) to investigate the effect of government investment shocks on private investment. And the empirical findings support the complementary hypothesis between government capital expenditure and private investment and that tends to crowd-in private investment in Ethiopia. And the empirical finding of recurrent part of government expenditure shows a mixed effect of complementary hypothesis and substitutability hypothesis which tends to crowd-in and crowd out effect .Thus government expenditure have a positive as well as negative effect on private investment and finally the study is used CHOW test in order to know whether structural break has an effect on private investment or not and the result depict that there is a structural break that have a positive effect on private investment of Ethiopia. Keyword: Government expenditure, private investment, VAR, crowding-In, crowding out, Ethiopia
Author : Mulugeta Tefera
Publisher : GRIN Verlag
Page : 49 pages
File Size : 47,7 Mb
Release : 2015-04-21
Category : Business & Economics
ISBN : 9783656946571
Thesis (M.A.) from the year 2014 in the subject Business economics - Operations Research, grade: Masters of Science, Wollega University (School of Economics), course: Development Economics, language: English, abstract: The topic of the research is Human Capital and Economic Growth of Ethiopia. The research answered questions such as “does human capital contribute to economic growth of Ethiopia?” with major objective to analyze the short run and long run effect of human capital on economic growth of Ethiopia over 1971 to 2013 using both ordinary least square (OLS) econometric and descriptive methods of data analysis. The data used for the research is secondary time series data collected by the National Bank of Ethiopia over the years 1971 to 2013. Nominal GDP is used as dependent and proxy variable for Economic growth while independent variables are physical capital, active labor force, terms of trade for measure of openness, government expenditure and human capital in the form of expenditure on health and education. Accordingly, the empirical finding shows that human capital in the form of education and health investment has consistent and significant long run effect on economic growth of Ethiopia at 5% level of significance. Keeping the other variables constant, 1% change (increase/decrease) in expenditure in human capital will change (increase/decrease) nominal output by 0.23%. In contrary short run human capital has consistent but insignificant effect on economic growth of Ethiopia. Because, either it takes time for education investment to pay off or the government’s budget for short run education and health sector development is not sufficient. The adjustment of the short run dynamics or disequilibrium to the long run equilibrium is weak, which is 36%. Thus, education and sectors ought to allocate resources for both quality of and access so that the benefit from human capital development outshines in contribution to economic growth. The sectoral contribution of human capital to Ethiopian economic growth may be future research.
Author : Tibebu Aragie
Publisher : GRIN Verlag
Page : 38 pages
File Size : 46,7 Mb
Release : 2015-01-19
Category : Political Science
ISBN : 9783656879183
Master's Thesis from the year 2014 in the subject Business economics - Economic Policy, grade: very good, , course: Msc in Economic Policy Analysis, language: English, abstract: The study was conducted to know the interrelationship between foreign direct investment and domestic private investment. The researcher employs a vector auto-regressive model with appropriate investigation of impulse response and variance decomposition. In addition, the researcher computes descriptive analysis. The study used time series data ranging from, 1970-2012 for econometric analysis and 1992-2012 for descriptive analysis. The result shows that foreign direct investment crowds-out domestic private investment. In addition, foreign direct investment does not have significant effect on economic growth. Secondly, Domestic private investment complements growth trajectory. However, expansion of domestic private investment does not welcome foreign direct investment.
Author : Fikadu Goshu
Publisher : GRIN Verlag
Page : 76 pages
File Size : 53,8 Mb
Release : 2014-12-17
Category : Business & Economics
ISBN : 9783656862703
Scientific Study from the year 2014 in the subject Economics - Case Scenarios, Wollega University (Department of Economics), language: English, abstract: This study has examined the impact of foreign aid on government expenditure in Ethiopia over the period 1981 to 2012 using Multivariate Vector Auto Regression analysis. All the necessary time series tests such as stationary test, co-integration, weak exiguity, and other tests are conducted. The empirical result from the long run fungibility equation result indicates that sectoral aid has negative effect on its sector spending in developmental sectors except for agricultural sector government spending. The estimate of agricultural aid also support that a 1percent increase in agricultural aid leads to a 0.83percent increase in agricultural spending. Aid other than health aid also has positive impact on health spending. The positive coefficient of aid other than the health implies that there is an aid diversion towards health sector from the others. The negative coefficients of sectoral aid on the sector spending and the negative coefficients of aid other than sector-specific aid, indicate diversion of aid away from the specific sector. Negative coefficients of explanatory variables may arise when there is a diversion of categorical aid from developmental investment towards non developmental expenditure such as general service government expenditures. The result also shows education aid is fungible both in short and long run. Health aid is fungible in the long run but not in the short run. Agriculture aid is non fungible in both long and short run in Ethiopia. The coefficient of aid other than education aid has positive sign that implies the diversion of foreign aid to the education sector. Foreign aid have also negative impact on all of non developmental government spending In order to get the desired benefit from foreign aid, Ministry of Finance and Economic Development has to set sound financial management system which stimulates economic growth and mitigate any diversion of developmental sector aid to other non developmental expenditure particularly in education and health sectors. Therefore, effective and efficient monitoring system which was purpose oriented utilization of foreign aid is central to make sectoral spending non fungible in Ethiopia.
Author : Jona Tuhafeni Nghipona
Publisher : Unknown
Page : 0 pages
File Size : 45,8 Mb
Release : 2021
Category : Public expenditure |zNamibia
ISBN : OCLC:1382403127
This study aimed to analyse the impact of public expenditure on private investment in Namibia from the period 1990 to 2020. In seeking to meet the objective of the stud y, an Autoregressive Distributed Lag (ARDL) model was estimated after the time-series properties of the variables used were tested. The bound test co¬-integration approach a long with ECM was applied to achieve the objectives of the study. Results indicated that the real impact of government expenditure depends upon the type of expenditure under consideration and thus government expenditure can crowd either in or out private investment. The government expenditures on agriculture, health and transport were insignificant in the short run but showed a crowding-in (positive) impact on private investment. In addition, education expenditure along with gross domestic product expenditures show a crowding in (positive) impact on private investment in the short run. Moreover, analysis suggests that more priorities should be given to those expenditures that have complimentary impact on private investment rather than spending on expenditures that are substituting (hindering) private investment. In addition, the Namibian government should adopt consistent fiscal policy measures that can establish budget discipline, transparency and accountability aimed at increasing the standard of living by assuring an efficient public expenditure budget. Furthermore, the government should also increase expenditure on health, since it will enhance private investment through improved health status and labour productivity.
Author : OECD
Publisher : OECD Publishing
Page : 280 pages
File Size : 47,6 Mb
Release : 2021-07-09
Category : Electronic
ISBN : 9789264921412
The 2021 edition includes input indicators on public finance and employment; process indicators include data on institutions, budgeting practices, human resources management, regulatory governance, public procurement, governance of infrastructure, public sector integrity, open government and digital government. Outcome indicators cover core government results (e.g. trust, political efficacy, inequality reduction) and indicators on access, responsiveness, quality and satisfaction for the education, health and justice sectors.
Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 30 pages
File Size : 54,8 Mb
Release : 1989-05-15
Category : Business & Economics
ISBN : 9781451974157
This paper examines the empirical evidence on the contribution that government and, in particular, capital expenditure make to the growth performance of a sample of developing countries. Using the Denison growth accounting approach, this study finds that social expenditures may have a significant impact on growth in the short run, but infrastructure expenditures may have little influence. While current expenditures for directly productive purposes may exert a positive influence, capital expenditure in these sectors appears to exert a negative influence. Experiments with other explanatory variables confirm the importance of the growth of exports to the overall growth rate.
Author : Mr.Dhaneshwar Ghura,Mr.Michael T. Hadjimichael
Publisher : International Monetary Fund
Page : 48 pages
File Size : 47,8 Mb
Release : 1995-02-01
Category : Business & Economics
ISBN : 9781451922523
This paper assesses empirically the role of public policies in stimulating private savings and investment in sub-Saharan African countries, based on data for the period 1986-92. The main findings of the analysis are as follows: (i) policies effective in stimulating private savings and investment include those that keep the rate of inflation low, reduce macroeconomic uncertainty, promote financial deepening, and lower the external debt burden; (ii) measures that promote structural reforms and reduce the budget deficit (without lowering government investment) help to raise private investment; and (iii) declines in government savings are only partially offset by increases in private savings.
Author : Ms.Keiko Honjo,Mr.Sanjeev Gupta,Marijn Verhoeven
Publisher : International Monetary Fund
Page : 61 pages
File Size : 50,5 Mb
Release : 1997-11-01
Category : Business & Economics
ISBN : 9781451922400
This paper assesses the efficiency of government expenditure on education and health in 38 countries in Africa in 1984-95, both in relation to each other and compared with countries in Asia and the Western Hemisphere. The results show that, on average, countries in Africa are less efficient than countries in Asia and the Western Hemisphere; however, education and health spending in Africa became more efficient during that period. The assessment further suggests that improvements in educational attainment and health output in African countries require more than just higher budgetary allocations.
Author : Arnis Vilks
Publisher : Cambridge Scholars Publishing
Page : 385 pages
File Size : 43,5 Mb
Release : 2017-05-11
Category : Business & Economics
ISBN : 9781443892285
This collection investigates various issues of investment and credit that are of importance to any developing economy. It uses micro- and macro-economic data from Ethiopia to analyse such topics as determinants of foreign direct investment, of bank credit and trade credit, microfinance and poverty reduction, and rural credit issues. The book applies sophisticated, state-of-the-art statistical techniques to analyse the data and derive policy recommendations. To the extent that the Ethiopian economy shares many features and policy issues with other developing economies, the text will be of interest to academics working in the field of development economics, and also to policy makers and policy analysts in developing countries and in development agencies throughout the world.
Author : Mr.Paolo Mauro
Publisher : International Monetary Fund
Page : 28 pages
File Size : 47,9 Mb
Release : 1996-09-01
Category : Business & Economics
ISBN : 9781451852097
This paper discusses the possible causes and consequences of corruption. It provides a synthetic review of recent studies that analyze this phenomenon empirically. In addition, it presents further results on the effects of corruption on growth and investment, and new cross-country evidence on the link between corruption and the composition of government expenditure.
Author : Mr.Philip R. Gerson
Publisher : International Monetary Fund
Page : 75 pages
File Size : 55,9 Mb
Release : 1998-01-01
Category : Business & Economics
ISBN : 9781451841602
This paper surveys the theoretical and empirical literature on the relationship between taxation and public expenditure and economic growth. Particular attention is paid to the effect of taxation and government expenditure on the supply and productivity of labor and physical capital. Studies suggest that well-targeted government expenditures on health, education, and infrastructure should have a positive impact on growth. By contrast, the impact of taxation on the supplies of labor and capital, and on output growth, is more muted.
Author : Almas Heshmati,Haeyeon Yoon
Publisher : Springer
Page : 276 pages
File Size : 54,5 Mb
Release : 2018-04-27
Category : Business & Economics
ISBN : 9789811081262
This volume is a collection of selected empirical studies on determinants of economic growth and development in Ethiopia.The core argument for editing this book is to provide an up-to-date picture of the state and patterns of growth and development in Ethiopia. Ethiopia has been under focus in the past due to draughts, war, famine, development changes and the effects of global economic crisis in the country. A main contribution of this volume is that it helps identify selected important determinants of growth and development in Ethiopia and provides an estimation of their effects using up-to-date data, modelling and methods. Taken together the studies provide a comprehensive picture of the state of growth and development, their measurements, causal relationships and evaluation of efficient policies and practices in achieving progress in Ethiopia. The issues covered represent major challenges to the government and development organizations who are aiming at achieving higher growth and alleviating poverty in the country. The studies cover transition from rural agriculture to urban industry and the development of services.
Author : Lant Pritchett
Publisher : World Bank Publications
Page : 46 pages
File Size : 51,6 Mb
Release : 1999
Category : Capital
ISBN : 9786010532298
May 2000 - Using the word capital to represent two different concepts is not such a problem when government is responsible for only a small fraction of national investment and is reasonably effective (as in the United States). But when government is a major investor and is ineffective, the gap between capital and cumulative, depreciated investment effort (CUDIE) may be enormous. A public sector steel mill may absorb billions as an investment, but if it cannot produce steel it has zero value as capital. The cost of public investment is not the value of public capital. Unlike for private investors, there is no remotely plausible behavioral model of the government as investor that suggests that every dollar the public sector spends as investment creates capital in an economic sense. This seemingly obvious point has so far been uniformly ignored in the voluminous empirical literature on economic growth, which uses, at best, cumulated, depreciated investment effort (CUDIE) to estimate capital stocks. But in developing countries especially, the difference between investment cumulated at cost and capital value is of primary empirical importance: government investment is half or more of total investment. And perhaps as much as half or more of government investment spending has not created equivalent capital. This suggests that nearly everything empirical written in three broad areas is misguided. First, none of the estimates of the impact of public spending identify the productivity of public capital. Even where public capital could be very productive, regressions and evaluations may suggest that public investment spending has little impact. Second, everything currently said about total factor productivity in developing countries is deeply suspect, as there is no way empirically to distinguish between low output (or growth) attributable to investments that created no factors and low output (or growth) attributable to low (or slow growth in) productivity in using accumulated factors. Third, multivariate growth regressions to date have not, in fact, controlled for the growth of capital stock, so spurious interpretations have emerged. This paper - a product of Poverty and Human Resources, Development Research Group - is part of a larger effort in the group to understand the importance of public sector actions for economic growth.