IDEAS home Printed from https://ideas.repec.org/a/bco/mbrqaa/v4y2017p24-40.html
   My bibliography  Save this article

Determinants of Economic Growth of Ethiopia: An Analysis for the Post Ethiopia-Eretria War (1998-2000)

Author

Listed:
  • Elyas Abdullahi

    (1PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, China)

  • Muhammad Asif Khan

    (PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, China)

  • Kamalova Mariyakhan

    (PhD Scholar, School of Economics, Huazhong University of Science and Technology, Wuhan, China)

  • Muhammad Afaq Haider JAFRI

    (PhD Scholar, School of Economics, Shanghai University, China)

Abstract

The purpose of this paper is to investigate what major macroeconomic variables contributed for the economic growth of Ethiopia after the Ethiopia-Eritrea war of 1998-2000. This study applies ordinary least square on time series data pertaining to core macroeconomics variables, collected from the database of World Bank and IMF. Empirical results reveal that Ethiopia has experienced economic boom after the Ethiopia-Eritrea war of 1998-2000 with its strategy of curtailing government expenditure and expanding public investment on mega projects. The study also identified that the “peace dividends†found to be well placed and is paying back positively. Ethiopia witnessed transition towards emerging economy in Sub-Saharan African country, assessing the economic growth and the factors that interplay behind the growth may give a helpful lesson for similar economies and the region. In contrast with other existing economic booms, Ethiopia’s growth acceleration has not achieved much attention in the literature. This study fills the gap by methodically identifying and assessing the major economic driving forces after the Ethiopia-Eritrea war of 1998-2000. The time period indicates crucial detours of how the country initiated and maintained the economic boom.

Suggested Citation

  • Elyas Abdullahi & Muhammad Asif Khan & Kamalova Mariyakhan & Muhammad Afaq Haider JAFRI, 2017. "Determinants of Economic Growth of Ethiopia: An Analysis for the Post Ethiopia-Eretria War (1998-2000)," European Journal of Studies in Management and Business, EUROKD, vol. 4, pages 24-40.
    • Handle: RePEc:bco:mbrqaa::v:4:y:2017:p:24-40
    DOI: 10.32038/mbrq.2017.04.03
    as

    Download full text from publisher

    File URL: https://api.eurokd.com/Uploads/Article/346/mbrq.2017.04.03.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.32038/mbrq.2017.04.03?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Priewe, Jan, 2016. "Ethiopia's high growth and its challenges: Causes and prospects," IPE Working Papers 70/2016, Berlin School of Economics and Law, Institute for International Political Economy (IPE).
    2. Yonghong Tu & Xiao Tan, 2012. "Technology spillovers of FDI in ASEAN sourcing from local and abroad," China Finance Review International, Emerald Group Publishing Limited, vol. 2(1), pages 78-94, January.
    3. Moller, Lars Christian & Wacker, Konstantin M., 2017. "Explaining Ethiopia’s Growth Acceleration—The Role of Infrastructure and Macroeconomic Policy," World Development, Elsevier, vol. 96(C), pages 198-215.
    4. Dercon, Stefan, 2006. "Economic reform, growth and the poor: Evidence from rural Ethiopia," Journal of Development Economics, Elsevier, vol. 81(1), pages 1-24, October.
    5. Kosuke Imai & Jeremy Weinstein, 2000. "Measuring the Economic Impact of Civil War," CID Working Papers 51A, Center for International Development at Harvard University.
    6. Chonghui Jiang & Yongkai Ma & Yunbi An, 2013. "International diversification benefits: an investigation from the perspective of Chinese investors," China Finance Review International, Emerald Group Publishing Limited, vol. 3(3), pages 225-249, August.
    7. Abiad (ADB), Abdul & Furceri (IMF and University of Palermo), Davide & Topalova (IMF), Petia, 2016. "The macroeconomic effects of public investment: Evidence from advanced economies," Journal of Macroeconomics, Elsevier, vol. 50(C), pages 224-240.
    8. Kosuke Imai & Jeremy M. Weinstein, 2000. "Measuring the Economic Impact of Civil War," CID Working Papers 51, Center for International Development at Harvard University.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Carlos Bozzoli & Tilman Brueck & Tony Muhumuza, 2016. "Activity Choices Of Internally Displaced Persons And Returnees: Quantitative Survey Evidence From Post-War Northern Uganda," Bulletin of Economic Research, Wiley Blackwell, vol. 68(4), pages 329-347, October.
    2. Andres F. Jola-Sanchez & Juan Camilo Serpa, 2021. "Inventory in Times of War," Management Science, INFORMS, vol. 67(10), pages 6457-6479, October.
    3. Ellyn Creasey & Ahmed S. Rahman & Katherine A. Smith, 2015. "Does Nation Building Spur Economic Growth?," Economic Inquiry, Western Economic Association International, vol. 53(1), pages 660-680, January.
    4. Joyce P. Jacobsen, 2012. "Gender and the Economic Impacts of War," Wesleyan Economics Working Papers 2012-008, Wesleyan University, Department of Economics.
    5. Rabia Haroon & Zainab Jehan, 2022. "Measuring the impact of violence on macroeconomic instability: evidence from developing countries," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 21(1), pages 3-30, January.
    6. Catherine Norman, 2009. "Rule of Law and the Resource Curse: Abundance Versus Intensity," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 43(2), pages 183-207, June.
    7. Arias Andrés F. & Laura Ardila, 2003. "Military Expenditure and Economic Activity: The Colombian Case," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, September.
    8. Crost, Benjamin & Felter, Joseph H., 2020. "Extractive resource policy and civil conflict: Evidence from mining reform in the Philippines," Journal of Development Economics, Elsevier, vol. 144(C).
    9. Barrett, Philip, 2022. "The fiscal cost of conflict: Evidence from Afghanistan 2005–2017," World Development, Elsevier, vol. 157(C).
    10. Thomas Edward Flores & Irfan Nooruddin, 2009. "Democracy under the Gun Understanding Postconflict Economic Recovery," Journal of Conflict Resolution, Peace Science Society (International), vol. 53(1), pages 3-29, February.
    11. Adama Bah, 2013. "Civil Conflicts as a Constraint to Regional Economic Integration in Africa," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(6), pages 521-534, December.
    12. Abrahms, Max & Dau, Luis Alfonso & Moore, Elizabeth M., 2023. "Should I stay or should I go now? Understanding terrorism as a driver of institutional escapism," International Business Review, Elsevier, vol. 32(4).
    13. Mr. Nicholas Staines, 2004. "Economic Performance Over the Conflict Cycle," IMF Working Papers 2004/095, International Monetary Fund.
    14. Gadong Toma Dalyop, 2017. "Determinants of Fiscal Deficit in Conflict-affected States in Africa," International Journal of Economic Policy Studies, Springer, vol. 12(1), pages 69-95, January.
    15. Bassil Charbel, 2013. "Macroeconomic Consequences of War and Terrorism in Lebanon," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 19(3), pages 415-429, December.
    16. Joseph Mawejje, 2024. "Government expenditure, informality, and economic growth: Evidence from Eastern and Southern African countries," African Development Review, African Development Bank, vol. 36(1), pages 125-138, March.
    17. Michal Rigel, 2020. "War and Philosophy: A Study of Mutual Interaction," E-LOGOS, Prague University of Economics and Business, vol. 2020(2), pages 46-56.
    18. Olaf J de Groot & Carlos Bozzoli & Anousheh Alamir & Tilman Brück, 2022. "The global economic burden of violent conflict," Journal of Peace Research, Peace Research Institute Oslo, vol. 59(2), pages 259-276, March.
    19. Romain Houssa & Oleg Badunenko & Daniel J. Henderson, 2010. "Explaining African Growth Performance: A Production-Frontier Approach," Working Papers 1013, University of Namur, Department of Economics.
    20. Mohajan, Haradhan, 2019. "The Second Industrial Revolution has Brought Modern Social and Economic Developments," MPRA Paper 98209, University Library of Munich, Germany, revised 26 Dec 2019.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bco:mbrqaa::v:4:y:2017:p:24-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sara Gunen (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.