Assessement of the effect of government expenditure on privat investment in Ethiopia

Inhaltsverzeichnis (Table of Contents)

• CHAPTER ONE: INTRODUCTION.
• 1.1. Back ground of the Study.
• 1.2. Statement of the Problem
• 1.3. Research Questions
• 1.4. Objective of the Study..
• 1.5. Significance of the study
• 1.6. Limitation and Scope of the Study
• CHAPTER TWO: RESEARCH METHODOLOGY.
• 2.1. Research Design...
• 2.2. Data Type and Source
• 2.3. Method of data analysis......
• 2.3.1. Descriptive Analysis..
• 2.3.2. Econometrics Analysis..
• 2. 4. Definition and Measurement of Variables..
• 2.5. Theoretical Framework for econometric model specification.......
• 2.6. Econometric Model specification......
• 2.7. Time series properties
• 2.7.1. Stationary Tests.
• 2.7.2. Phillips-Perron (PP) test
• 2.7.3. Cointegration test....
• 2.7.4. Granger Causality Test.
• 2.8. Estimation Techniques ..
• 2.8.1. Vector Auto-Regression (VAR) analysis.
• 2.8.2. Impulse Response Analysis..
• 2.8.3. Variance Decomposition
• 2.8.4. The Error-Correction Model..
• 2.9. Chow Test for Structural Stability.
• CHAPTER THREE: RESULT AND DISCUSSION.
• 3.1. Descriptive Analysis...
• 3.2 Econometrics Analysis ......
• 3.3 The Effect of Government Expenditure on Private Investment
• 3.4. The Effect of Recurrent Expenditure on Private Investment....
• 3.5. The Effect of Budget Deficit on Private Investment.
• 3.6. The Effect of Domestic credit to private sector on Private Investment..
• 3.7. Forecast Error Variance Decomposition Analysis (FEVD)..\li>
• 3.8. Impulse response Function........
• 3.9. Chow test result.

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis examines the effect of government expenditure on private investment in Ethiopia. The study aims to analyze the relationship between government expenditure, private investment, and economic growth. The study utilizes econometric techniques, including time-series analysis and cointegration tests.

• The impact of government expenditure on private investment.
• The role of recurrent expenditure on private investment.
• The effect of budget deficit on private investment.
• The impact of domestic credit to the private sector on private investment.
• Economic growth and its relationship with government expenditure and private investment.

Zusammenfassung der Kapitel (Chapter Summaries)

Chapter One: Introduction.

This chapter presents the background of the study, outlining the importance of understanding the relationship between government expenditure and private investment in Ethiopia. The chapter also defines the problem, formulates research questions, and clarifies the objectives and significance of the study. It also addresses the limitations and scope of the research.

Chapter Two: Research Methodology.

This chapter details the research design and data sources used in the study. It outlines the methodology for data analysis, including descriptive and econometric analysis. The chapter also defines and measures key variables, discusses the theoretical framework for econometric model specification, and explores time series properties. Additionally, it explains the estimation techniques employed in the study, including Vector Auto-Regression (VAR) analysis, impulse response analysis, variance decomposition, the error-correction model, and the Chow test for structural stability.

Chapter Three: Result and Discussion.

This chapter presents and analyzes the findings of the study. It begins with a descriptive analysis of government expenditure and private investment trends in Ethiopia. Subsequently, the chapter delves into the econometric analysis, examining the cointegration relationship between government expenditure and private investment, the Granger causality test, and VAR estimation. The chapter further explores the short-run error correction results and the effects of various components of government expenditure, including recurrent expenditure, budget deficit, and domestic credit to the private sector, on private investment. Finally, it examines the forecast error variance decomposition analysis (FEVD) and the impulse response function to understand the dynamic relationships between these variables.

Schlüsselwörter (Keywords)

This thesis explores the critical relationship between government expenditure and private investment in Ethiopia, using econometric models and time series analysis. It focuses on analyzing the impact of different government expenditure components, including recurrent expenditure, budget deficit, and domestic credit to the private sector, on private investment. The study also examines the role of economic growth in this relationship, with a focus on the dynamics of private investment and government expenditure. The research utilizes key concepts such as cointegration, Granger causality, and the error correction model to understand the long-run and short-run effects of government expenditure on private investment and economic growth in Ethiopia.