Impact of Population Growth on the Ethiopian economic Performance

Ethiopia is the second populous country in Africa while it is one of the Sub-Saharan Countries trapped by poverty. Her population is increasing at an average rate of 2.5%. Thus the objective of this study to examine whether population growth has its own bad effects on the Ethiopian economy. Population may be considered a major factor for the abject poverty trap of the country in the period 1970/71-1990/91 since per capita income was very low. Although there has been registered improvement of economic performance since 2004/05, population growth has been still high even though the rate has been decreasing. Econometric analysis has shown that population growth has had a significant negative impact in the short run but that of positive impact in the long run on the economic performance of the country.

Autorentext

Finanzministerium, Direktion für die Zusammenarbeit mit internationalen Finanzinstitutionen, Koordinator des öffentlichen Projekts.