Journal ID : AMA-10-02-2022-11119
[This article belongs to Volume - 53, Issue - 02]
Total View : 463

Title : Nexus of Economic Growth and Poverty Reduction: Evidence from Ethiopia

Abstract :

The nexus between economic growth and poverty reduction in Ethiopia was explored in this study during the period 1995-2015. For this investigation, we used the autoregressive distributed lag (ARDL) model and the error correction model (ECM). In the short-run, we found bidirectional causality between economic growth and poverty reduction. In the long run, however, the results reveal unidirectional causality. Towards this end, it has been determined that economic growth is mutually beneficial in both short and long run, resulting in poverty reduction in the country. In the short-run, policymakers should focus on measures that promote both economic growth and poverty reduction. Furthermore, in the long run, pro-growth measures should be prioritized, as this would ensure that all forms of poverty are reduced.

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