Please use this identifier to cite or link to this item:
http://hdl.handle.net/123456789/2594
Title: | Role of Commercial Bank of Ethiopia in Fostering Ethiopian Economy |
Authors: | Birara, Fikru |
Keywords: | Commercial Bank of Ethiopia,Fostering Ethiopian Economy |
Issue Date: | Jul-2014 |
Publisher: | St. Mary's University |
Abstract: | The purpose of this paper is to investigate the role of commercial bank of
Ethiopia on the Ethiopian economic growth. Earlier studies in this field have
argued that a link always exist between the commercial banks and economic
growth in every economy. Based on this the study examined the role
commercial bank of Ethiopia played on economic growth for a period of 32
years from1981-2012. The researcher used different statistical and
econometrical analyses such as Unit root test, Cointegration test, and
Granger causality test and regression analysis in order to achieve the
objectives of the study. Augmented Dickey Fuller test (ADF) shows the
stationary of all variables at first difference. Johansen cointegration test
confirms the cointegreration of three variables in trace statistics and two
variables in maximum Eigen value test. The Granger-Causality test confirms
the bidirectional causal relationship of deposits, reserve and capita, asset
and profitability with economic growth. On the other side unidirectional
causal relationship exist between investments and loan and advancement in
economic growth. Regression results indicate that deposits, investments,
asset and reserve and capital have significant positive impact on economic
growth of Ethiopia. It is recommended that the policy makers should make
policies to enhance the banking sector in Ethiopia because banking sector is
significantly contributing in the economic growth of Ethiopia. |
URI: | http://hdl.handle.net/123456789/2594 |
Appears in Collections: | The 8th Student Research Forum
|
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