This paper examines the effect of devaluation on domestic price along with the effect of changes ... more This paper examines the effect of devaluation on domestic price along with the effect of changes in Money Supply (MS), World Commodity Price Index (WCPI) and the Output gap on the Consumer Price Index (CPI) in Ethiopia for the period 1995 to 2017 on the basis of secondary data using bound testing (ARDL) approach of co-integration. The result of ARDL in the short run shows that devaluation of the nominal effective exchange rate (NEER) has no significant effect on CPI although money supply and WCPI have a positive and significant effect. The speed of adjustment from previous quarter’s disequilibrium in CPI to current quarter’s equilibrium is fast in each period. In the long run, the NEER, MS and WCPI have positive and significant effect on the CPI. The result of Granger causality test shows that there is a unidirectional causality from nominal effective exchange rate and money supply to the CPI although there is bidirectional causality between CPI and WCPI. The result of impulse respo...
Turkish Journal of Agriculture - Food Science and Technology
The purpose of this paper is to look into the determinants of agricultural output growth in Ethio... more The purpose of this paper is to look into the determinants of agricultural output growth in Ethiopia. Along with this general objective, this study intends to look at the trend of total factor productivity growth in the agricultural sector and its contribution to agricultural output growth. Using autoregressive distributed lag model bounds testing, this research estimates the long-run and short-run cointegration between agricultural output growth and the total factor productivity. In this study, Augmented Dickey-Fuller and Phillip-Perron unit root tests were used to find out the order of integration of the variables. The selected econometric model goes through all the diagnostic tests and confirms the absence of heteroscedasticity, serial correlation, and normality. The finding of this study indicates that total factor productivity, agricultural land, agricultural machinery, and fertilizer all have a significant and positive effect on the growth of agricultural output. According to ...
This paper examines the effect of devaluation on domestic price along with the effect of changes ... more This paper examines the effect of devaluation on domestic price along with the effect of changes in Money Supply (MS), World Commodity Price Index (WCPI) and the Output gap on the Consumer Price Index (CPI) in Ethiopia for the period 1995 to 2017 on the basis of secondary data using bound testing (ARDL) approach of co-integration. The result of ARDL in the short run shows that devaluation of the nominal effective exchange rate (NEER) has no significant effect on CPI although money supply and WCPI have a positive and significant effect. The speed of adjustment from previous quarter’s disequilibrium in CPI to current quarter’s equilibrium is fast in each period. In the long run, the NEER, MS and WCPI have positive and significant effect on the CPI. The result of Granger causality test shows that there is a unidirectional causality from nominal effective exchange rate and money supply to the CPI although there is bidirectional causality between CPI and WCPI. The result of impulse respo...
Turkish Journal of Agriculture - Food Science and Technology
The purpose of this paper is to look into the determinants of agricultural output growth in Ethio... more The purpose of this paper is to look into the determinants of agricultural output growth in Ethiopia. Along with this general objective, this study intends to look at the trend of total factor productivity growth in the agricultural sector and its contribution to agricultural output growth. Using autoregressive distributed lag model bounds testing, this research estimates the long-run and short-run cointegration between agricultural output growth and the total factor productivity. In this study, Augmented Dickey-Fuller and Phillip-Perron unit root tests were used to find out the order of integration of the variables. The selected econometric model goes through all the diagnostic tests and confirms the absence of heteroscedasticity, serial correlation, and normality. The finding of this study indicates that total factor productivity, agricultural land, agricultural machinery, and fertilizer all have a significant and positive effect on the growth of agricultural output. According to ...
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Papers by Gudina Goda