Factors Affecting Gross Domestic Saving in Ethiopia. A Vector Error Correction Model Approach

Master's Thesis from the year 2022 in the subject Economics - Finance, grade: Very Good, , course: Economics, language: English, abstract: The objective of this study is to investigate the short run and long run factors affecting gross domestic saving in Ethiopia using time series data covering the time period of 1985 to 2020. To achieve this desired objective, the study employed Johanson cointegration test to identify the existence of long run relationship between variables after data stationary has ensured using Augmented Ducky Fuller test. The results reveal that there are up to four cointegrating equation in the model. The study also employed Vector Error Correction Model to identify the impacts of factors affecting gross domestic saving in Ethiopia both in short run and long run.