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Determinants of agricultural output in Ethiopia: ARDLapproach to co-integration

Author

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  • Adamu Mulu Ketema

    (Lecturer at Salale University,Fitche, Ethiopia.)

Abstract

Agricultural output in Ethiopia plays an essential role in generatingforeign exchange and feeding the largest share of the population, due this identifying determinant of agricultural output at macro level is important. This study investigated determinants of agricultural output at macro level by using time series data starting from 1980-2018.The ARDL approach to co integration is applied to investigate the long run and short-run determinants of agricultural output. The result reveals that Rainfall, Fertilizer input import, Trade openness, inflation rate affect positively and significantly in the long run whereas Drought affect negatively and significantly. Inthe short run Fertilizer input import and labor force affect positively and significantly while Rainfall affects positively and insignificant. Also besides to this, in a short run, drought affects negatively and significantly agricultural output. Therefore the study recommends government policies should focus on proper uses of resources like expenditure on agriculture should be used properly, Drought-resistant agriculture, and reduces the dependency on rainfall by adopting different technology at the macro level and micro level.

Suggested Citation

  • Adamu Mulu Ketema, 2020. "Determinants of agricultural output in Ethiopia: ARDLapproach to co-integration," International Journal of Business and Social Research, LAR Center Press, vol. 10(3), pages 1-10, March.
    • Handle: RePEc:lrc:larijb:v:10:y:2020:i:3:p:1-10
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    File URL: https://thejournalofbusiness.org/index.php/site/article/view/1293/715
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    References listed on IDEAS

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    1. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
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    More about this item

    Keywords

    Agricultural output; determinants; drought; ARDL; co-integration; Ethiopia.;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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