Contents

Assessment on public external debt in Ethiopia

MENGSTE, Tegene Hailu

  • 173 ITEM VIEW
  • 240 DOWNLOAD
Abstract

At early stage of economic development process, external borrowing is a means of fulfilling the resource gaps for the developing world. Nowadays, Ethiopia’s external debt to GDP is rising and continuously forcing the country to become among world's Heavily Indebted Poor Countries. This is serious problem coupled with covid-19 , Internal conflict and political uncertainties. The aim of the study is to assess the determinants of External debt of Ethiopia both in the long-run and short-run. The study applied ARDL co-integration model and secondary data covers from 1990 to 2019. In this study STATA statistical software package version-16 deployed and the necessary diagnosis tests have been conducted.

The regression estimation result confirms that 88 per cent of the variation is explained within the model while 22 per cent is explained out of the model. The budget and trade deficit impart positive and statistically significant effect on external debt of Ethiopia. While debt service, inflation and openness have statistically significant and negative effects. However, economic growth has negatively and statistically insignificant effects. The result induces opening the economy to the rest of the world significant effect on reducing foreign debt burden. The policy implications are minimizing fiscal deficit by strengthening the tax system of the country; existing debt restructuring from business loan to concessional loan, which has lower interest rate, and properly managing inflation that contribute to the cost overrun of the country. All these efforts may reduce external debt in line with the capacity of the country in the future.

Advisors
Park, Jin
Department
KDI School, Master of Public Management
Issue Date
2022
Publisher
KDI School
Description
Thesis(Master) -- KDI School: Master of Public Management, 2022
Keywords
Debts, External--Ethiopia; Debts, Public--Ethiopia
Contents
Chapter One: Introduction

Chapter Two: Literature Review.

Chapter Three: Research Methodology

Chapter Four: Data Findings and Discussion

Chapter Five: Conclusion and Recommendation
Pages
51 p
URI
https://archives.kdischool.ac.kr/handle/11125/44758
Type
Thesis
Files in This Item:

Click the button and follow the links to connect to the full text. (KDI CL members only)

qrcode

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.

상단으로 이동