Author
Listed:
- Muuz Hadush
- Kidanemariam Gebregziabher
- Sisay Biruk
Abstract
The purpose of this study is to analyze the determinant of economic growth in the region of East African countries from 2002 to 2018. In order to investigate empirically the key determinants of economic growth in East African countries, this study used a dynamic panel model. To improve efficiency, Generalized Moments Method (GMM) estimators are used. Based on panel data from the East African countries during the 2002–2018 period, this study, therefore, estimated the determinants of economic growth in the region. The result suggests that government expense, government revenue, volume of imports and exports of goods and services significantly contribute to the economic growth of the countries. However, the consumer price index, current account balance, gross government debt, and foreign direct investment lead to negative economic growth. The paper has three policy implications; first, promoting open trade and ensuring peace and stability in the region is a paramount policy to enhance the economic growth of the region. East African Countries should move forward in creating stability regionally and internally within the countries. Second, countries in East Africa are recommended to strengthen and sustain their policies on government expenses, government revenue and revise their policies on government debt, inflation and current account balance. Major reforms are required in foreign direct investment and general government debt within the region. Third, to address obstacles in trade, climate change and the tax collection system, political and economic integration is fundamental to the region and to making the region competitive in the international trade arena.
Suggested Citation
Muuz Hadush & Kidanemariam Gebregziabher & Sisay Biruk, 2023.
"Determinants of economic growth in East African countries: A dynamic panel model approach,"
Cogent Economics & Finance, Taylor & Francis Journals, vol. 11(2), pages 2239629-223, June.
Handle:
RePEc:taf:oaefxx:v:11:y:2023:i:2:p:2239629
DOI: 10.1080/23322039.2023.2239629
Download full text from publisher
As the access to this document is restricted, you may want to search for a different version of it.
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:taf:oaefxx:v:11:y:2023:i:2:p:2239629. 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.
We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/OAEF20 .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.