An Econometric Investigation of the Contribution of Major Sectors to Ethiopian Economic Growth: A Time Series Analysis

Abstract

: The main objective of the study was to analyze the major sectors contribution to Ethiopian economic growth in the 1982 - 2021 in Ethiopia. Data were collected from World Development Index database data. A Stationarity test was performed before conducting the data analysis. The result from the unit root test indicated that both dependent and independent variables were stationary at level and a multiple linear regression model for data analysis was applied. The variables were the annual growth of agricultural sector, industrial sector and service sector annual growth. The results indicated that agriculture, industry, and services service sectors affected the growth level of Ethiopian economic statistically significantly at less than 5% significance level. The coefficient of the variable Agriculture is big and indicated that the main growth engine of the Ethiopian economy was the Agriculture.