International Journal of Research in Business and Social Science

International Journal of Research in Business and Social Science

Macroeconomic determinants of total factor productivity and its trend in Ethiopia

Yazarlar: Adisu Abebaw Degu, Dagim Tadesse Bekele

Cilt 8 , Sayı 6 , 2019 , Sayfalar -

Konular:

Anahtar Kelimeler:Effect Macroeconomic Variables Drought Total Factor Productivity ARDL Ethiopia

Özet: Total factor productivity (TFP) as a source of economic growth, has been recognized in economic theory for a long period of time. In this research we tried to examine the effect of some macroeconomic factors, which include trade openness, inflation, government expenditure, credit extended and foreign direct investment, and natural disaster drought on total factor productivity and its trend in Ethiopia by using Time series data spanning from 1991 to 2018.  The TFP was computed by using the growth accounting method from Cobb–Douglas production function.  ARDL was used for estimation of the short and long run econometric model.  Accordingly, the trend analysis shows the growth in TFP has been fluctuating over the study period. The result from ARDL indicated that; in long run foreign direct investment, government expenditure and drought negatively and significantly affect TFP. Credit extended is found to affect TFP positively and significantly, while inflation and trade openness are insignificant. Therefore, policies such as; subsidizing domestic firms, effective government spending and making the agriculture sector drought resistant need to be stimulated.


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BibTex
KOPYALA
@article{2019, title={Macroeconomic determinants of total factor productivity and its trend in Ethiopia}, volume={8}, number={0}, publisher={International Journal of Research in Business and Social Science}, author={Adisu Abebaw Degu, Dagim Tadesse Bekele}, year={2019} }
APA
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Adisu Abebaw Degu, Dagim Tadesse Bekele. (2019). Macroeconomic determinants of total factor productivity and its trend in Ethiopia (Vol. 8). Vol. 8. International Journal of Research in Business and Social Science.
MLA
KOPYALA
Adisu Abebaw Degu, Dagim Tadesse Bekele. Macroeconomic Determinants of Total Factor Productivity and Its Trend in Ethiopia. no. 0, International Journal of Research in Business and Social Science, 2019.