THE CONTRIBUTION OF EXPORT TO ETHIOPIA’S ECONOMIC GROWTH

Abstract

This study empirically investigated the impact of export growth on economic growth in Ethiopia. The study employed theoretical framework of aggregate demand model developed by J.M. Keynes using annual time series data for the period 1960/61 - 2015/16 for Ethiopia. The ARDL approach is applied to examine both the short-run and long-run relationships between export and economic growth. The main finding of the study, at a broad level, is that the rate of growth of real export has a positive and significant effect on the rate of economic growth both in short-run and long-run. The effect of real export growth to economic growth is higher in long-run than in short-run.