Research Paper | Economics | India | Volume 6 Issue 2, February 2017
The Impact of Bank Saving and Bank Credit on Economic Growth in Ethiopia: An ARDL Co-integration Approach
Sisay Mulate Guangul, A. S. Chawla
Economic growth is the common goal of all nations in the world. Economic growth is defined as a positive change in the national income or the level of production of goods and services by a country over a given period of time. The general objective of this study is to investigate the impact of bank savings and bank credits on Ethiopias economic growth over the period 1970/71-2014/15. The ARDL Approach to Co-integration and Error Correction Model are applied in order to investigate the long-run and short run impact. The finding of the Bounds test shows that there is a stable long run relationship between independent variables and dependent variable. The long run economic growth regression result indicates that human capital, labour force, private domestic credit, terms of trade and export have positive and significant impact on economic growth of Ethiopia. However, the result shows that gross domestic saving and gross capital formation have an insignificant positive impact on economic growth in Ethiopia. Finally, the study recommended that to make domestic saving is important to maintain sustainable economic growth in Ethiopia, the government should increase the amount of domestic saving. To do so, the government should focus to increase broad money, real interest rate and life expectancy that are important determinants to increase domestic saving.
Keywords: Ethiopia, Economic Growth, Domestic Saving, Domestic Credit, ARDL
Edition: Volume 6 Issue 2, February 2017
Pages: 1164 - 1173
How to Cite this Article?
Sisay Mulate Guangul, A. S. Chawla, "The Impact of Bank Saving and Bank Credit on Economic Growth in Ethiopia: An ARDL Co-integration Approach", International Journal of Science and Research (IJSR), https://www.ijsr.net/search_index_results_paperid.php?id=ART2017909, Volume 6 Issue 2, February 2017, 1164 - 1173
44 PDF Views | 37 PDF Downloads
Similar Articles with Keyword 'Ethiopia'
Research Paper, Economics, Ethiopia, Volume 4 Issue 4, April 2015
Pages: 2475 - 2484Financial Development and Economic Growth Nexus: Evidence from Ethiopia (Johnson Approach to Co-Integration)
Hailay Tsigab Kahsay
Research Paper, Economics, Ethiopia, Volume 5 Issue 11, November 2016
Pages: 1162 - 1172Determinants of Income Diversification among Rural Farm Households: The Case of Leemo District, Hadiya Zone, South Nation Nationalities People Region, Ethiopia
Yisihake Ergicho Ababbo
Research Paper, Economics, Ethiopia, Volume 5 Issue 8, August 2016
Pages: 1399 - 1401Inflation and Gross Domestic Savings nexus in Ethiopia
Demilie Basha Hailu, Samson Abay
Research Paper, Economics, Ethiopia, Volume 2 Issue 1, January 2013
Pages: 423 - 430Determinants of Farmers' Participation Decision on Local Seed Multiplication in Amhara Region,Ethiopia: A Double Hurdle Approach
Mesay Yami, TekluTesfaye, Adam Bekele
Research Paper, Economics, Ethiopia, Volume 3 Issue 10, October 2014
Pages: 1945 - 1951Analyzing Adoption and Intensity of Use of Coffee Technology Package in Yergacheffe District, Gedeo Zone, SNNP Regional State, Ethiopia
Abreham Kebedom, Tewodros Ayalew
Similar Articles with Keyword 'Economic Growth'
Research Paper, Economics, Saudi Arabia, Volume 4 Issue 12, December 2015
Pages: 1756 - 1761Location Quotient Technique and Economy Analysis of Regions: Tabuk Province of Saudi Arabia as a Case Study
A.K. Alhowaish, Alsharikh, M.A, Alasmail, M.A, Alghamdi, Z.A
Research Paper, Economics, Nigeria, Volume 4 Issue 8, August 2015
Pages: 1138 - 1144Contraction in Economic Activities and Government Expenditure in Nigeria: An Asymmetric ARDL Approach
Okonkwo N. Osmond
Research Paper, Economics, Zimbabwe, Volume 5 Issue 2, February 2016
Pages: 1426 - 1432The Need to Go Beyond GDP in Measuring Development
Eric S. M. S. Makura
Research Paper, Economics, China, Volume 6 Issue 11, November 2017
Pages: 2209 - 2212The Research on the Features and Influential Factors of Industrial Transfer in Beijing-Tianjin-Hebei Region
Yao-Qun Zheng, Xing Ge
Research Paper, Economics, Ethiopia, Volume 4 Issue 4, April 2015
Pages: 2475 - 2484Financial Development and Economic Growth Nexus: Evidence from Ethiopia (Johnson Approach to Co-Integration)
Hailay Tsigab Kahsay
Similar Articles with Keyword 'Domestic Saving'
Research Paper, Economics, Ethiopia, Volume 5 Issue 8, August 2016
Pages: 1399 - 1401Inflation and Gross Domestic Savings nexus in Ethiopia
Demilie Basha Hailu, Samson Abay
Review Papers, Economics, India, Volume 4 Issue 4, April 2015
Pages: 1932 - 1934Foreign Direct Investment and Growth in BRICS Countries: A Review
Narender, Shilpi Devi
Research Paper, Economics, Sri Lanka, Volume 7 Issue 7, July 2018
Pages: 1051 - 1054International Capital Mobility of Bangladesh, India, Pakistan, and Sri Lanka
Dr. P J Kumarasinghe
Research Paper, Economics, India, Volume 6 Issue 2, February 2017
Pages: 1164 - 1173The Impact of Bank Saving and Bank Credit on Economic Growth in Ethiopia: An ARDL Co-integration Approach
Sisay Mulate Guangul, A. S. Chawla
Research Paper, Economics, Rwanda, Volume 8 Issue 11, November 2019
Pages: 30 - 35Time Series Analysis of Factors Influencing Gross Capital Formation INRWANDA (2004-2016)
Muhayeyezu Joseph Desire, Patrick Mulyungi
Similar Articles with Keyword 'Domestic Credit'
Research Paper, Economics, India, Volume 6 Issue 2, February 2017
Pages: 1164 - 1173The Impact of Bank Saving and Bank Credit on Economic Growth in Ethiopia: An ARDL Co-integration Approach
Sisay Mulate Guangul, A. S. Chawla
Research Paper, Economics, Uganda, Volume 7 Issue 12, December 2018
Pages: 1279 - 1289The Relationship between Inflation and Financial Sector Development: Evidence from Uganda
Akena Geoffrey Oyoo
Similar Articles with Keyword 'ARDL'
Research Paper, Economics, Nigeria, Volume 4 Issue 8, August 2015
Pages: 1138 - 1144Contraction in Economic Activities and Government Expenditure in Nigeria: An Asymmetric ARDL Approach
Okonkwo N. Osmond
Case Studies, Economics, Iraq, Volume 4 Issue 8, August 2015
Pages: 1506 - 1516The Impact of External Debt on Economic Growth: Empirical Evidence from Iraq
Dr. Younis Ali Ahmed PhD, Sazan Taher Saeed MSc, Shvan Jamal Hama Saed MSc
Research Paper, Economics, India, Volume 4 Issue 11, November 2015
Pages: 1552 - 1555Financial Inclusion Strategies: Progress in Dakshina Kannada District
Maria Rodrigues, Dr. Suresh Poojary
Research Paper, Economics, Nigeria, Volume 2 Issue 12, December 2013
Pages: 378 - 382Fisher?s Effect in Nigeria: Empirical Analysis Using ARDL (Bound Test) Approach
Adegboyega Soliu B, Odusanya Ibrahim A, Popoola, R.O
Research Paper, Economics, Iraq, Volume 6 Issue 9, September 2017
Pages: 872 - 876Using the Price and Income Elasticities for Demand Planning of Imports in Iraq
Dr. Hussain Ashoor J. El- Attabi