Economic sustainability in Ethiopia

Abstract This study focuses on examining the determinants of sustainable development by focusing the experience from Ethiopia. A time series analysis that covers the period from 1974 to 2023 was used for the analysis. It is designed to examine sustainability in its holistic view which is many previo...

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Main Authors: Yohannes Girma, Abera Ayalew, Ewunetu Tazebew
Format: Article
Language:English
Published: Springer 2025-08-01
Series:Discover Sustainability
Subjects:
Online Access:https://doi.org/10.1007/s43621-025-01775-9
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author Yohannes Girma
Abera Ayalew
Ewunetu Tazebew
author_facet Yohannes Girma
Abera Ayalew
Ewunetu Tazebew
author_sort Yohannes Girma
collection DOAJ
description Abstract This study focuses on examining the determinants of sustainable development by focusing the experience from Ethiopia. A time series analysis that covers the period from 1974 to 2023 was used for the analysis. It is designed to examine sustainability in its holistic view which is many previous studies failed to consider. Autoregressive integrated moving average model was used for the analysis. Dickey fuller test for stationarity and interpolation was used during the pre-estimation process. Principal component analysis was applied to develop index for the variable governance. The result showed that foreign direct investment, economic growth, carbon emission, tax revenue, external debt stock, inflation and governance have a significant effect on sustainable development. Residual test for the white noise and within sample forecast was used to validate the model. The 10 years forecast (2024–2033) showed that there is an increasing trend in sustainable development in Ethiopia due to increase in governance quality and economic growth. Thus, a coordinated policy framework that balances economic, environmental, and governance objectives is vital for Ethiopia’s sustainable future.
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institution Kabale University
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spelling doaj-art-ea0ec240e54944ca9adf33725ab0f3902025-08-20T04:03:18ZengSpringerDiscover Sustainability2662-99842025-08-016112210.1007/s43621-025-01775-9Economic sustainability in EthiopiaYohannes Girma0Abera Ayalew1Ewunetu Tazebew2Department of Agricultural Economics, College of Agriculture, Injibara UniversityDepartment of Agricultural Economics, College of Agriculture, Injibara UniversityDepartment of Natural Resource Management, College of Agriculture, Injibara UniversityAbstract This study focuses on examining the determinants of sustainable development by focusing the experience from Ethiopia. A time series analysis that covers the period from 1974 to 2023 was used for the analysis. It is designed to examine sustainability in its holistic view which is many previous studies failed to consider. Autoregressive integrated moving average model was used for the analysis. Dickey fuller test for stationarity and interpolation was used during the pre-estimation process. Principal component analysis was applied to develop index for the variable governance. The result showed that foreign direct investment, economic growth, carbon emission, tax revenue, external debt stock, inflation and governance have a significant effect on sustainable development. Residual test for the white noise and within sample forecast was used to validate the model. The 10 years forecast (2024–2033) showed that there is an increasing trend in sustainable development in Ethiopia due to increase in governance quality and economic growth. Thus, a coordinated policy framework that balances economic, environmental, and governance objectives is vital for Ethiopia’s sustainable future.https://doi.org/10.1007/s43621-025-01775-9Adjusted net savingDeterminantsForecastGovernanceARIMAXEthiopia
spellingShingle Yohannes Girma
Abera Ayalew
Ewunetu Tazebew
Economic sustainability in Ethiopia
Discover Sustainability
Adjusted net saving
Determinants
Forecast
Governance
ARIMAX
Ethiopia
title Economic sustainability in Ethiopia
title_full Economic sustainability in Ethiopia
title_fullStr Economic sustainability in Ethiopia
title_full_unstemmed Economic sustainability in Ethiopia
title_short Economic sustainability in Ethiopia
title_sort economic sustainability in ethiopia
topic Adjusted net saving
Determinants
Forecast
Governance
ARIMAX
Ethiopia
url https://doi.org/10.1007/s43621-025-01775-9
work_keys_str_mv AT yohannesgirma economicsustainabilityinethiopia
AT aberaayalew economicsustainabilityinethiopia
AT ewunetutazebew economicsustainabilityinethiopia