Effects of Population Growth on Economic Growth in Ethiopia

The study examines the "Effects of Population Growth on Economic Growth in Ethiopia: Evidence from Auto Regressive Distributed Lag (ARDL) Model Approach during 1980 - 2019. This study used a time series design which introduced both descriptive and inferential statistics. According to the findings of this study, the appraisal coefficient of population growth (POP) is positive and significant. However, in response to the long run relationship; effects of population growth on economic growth (RGDP) of Ethiopia undertaken bound test and grander causality test on macroeconomic variables. From the finding of bound test, since the value of F-statics is greater than the upper boundary line then there are a long run equilibrium relationships between RGDP (Real Gross Domestic Product), Population number, foreign direct investment net inflow, personal remittance, population growth rate, rate of inflation and gross capital formation. From result of Grander Causality test, the investigation shows that Real Gross Domestic Product (RGDP) can cause population number (POP) of Ethiopia, while population number (POP) cannot cause Real Gross Domestic Product (RGDP) at the same time.