Educational Journey
MSc in Economic Policy Analysis
Apostolic Prefecture of Jimma Bonga
Lecturer in Economics • Economics
Experience
Lecturer
2016 - Present • EconomicsEditors Role
Reviewer
GJHSS
0 -Affiliations
Ethiopian Economic Association
Membership
Member since 2017Research
Does Trade Openness Reduce Inflation? Empirical Evidence from Ethiopia
Of the most commonly celebrated propositions in international trade is the hypothesis that trade liberalization is associated with declining prices, so that protectionism is inflationary. The New Growth Theory is strongly in favor of this view. However, the “Cost-push advocators†claim for the existence of positive correlations between trade openness and inflation variables. Moreover, empirical studies have been confirming inconclusive results regarding the nature of relationships between the two variables. These theoretical and empirical departures are the principal motivations to the current study. This study is aimed to test the relationship between inflation and trade openness variables in Ethiopia, using the time series data set for the period serially ranging from 1976/77 to 2016/77. Augmented Dickey Fuller and Phillips Perron approaches will be employed for testing the stationarity properties of individual variables in the model and the Johnson’s maximum likely-hood approach will be employed for cointegration tests.
Monetary Policy and Inflation Dynamics in Ethiopia: An Empirical Analysis
While inflationary sources have been linked with various issues, its attachment to money supply had especial consideration in inflation theories. The Classical version of Quantity Theory holds for inflation as being ‘always and everywhere a monetary phenomenon’. On the other side, Keynes’s version departed by claiming neutrality of money in an economy where idle capacity exists. Motivated basically by these theoretical departures on the link between the two variables, and the limited availability of literatures particularly in the spirit of the subject it is concerned with, the present study aimed to empirically examine the share of money supply in explaining the dynamics of inflation in Ethiopia, using Error Correction Model by employing the time series data set for the period ranging from 1974/75 to 2014/15. The ohnson’s Maximum likelihood approach for cointegration has indicated the existence of long run relationships amongst variables entered the inflation model.
