IJSRP, Volume 6, Issue 3, March 2016 Edition [ISSN 2250-3153]
Muhdin Muhammedhussen Batu
Abstract:
The main focus of this review is to identify the major drivers of Ethiopian Economic Growth. A deep literature review was done on 12 papers conducted in Ethiopia between year 2011 and 2015. The review result shows that Economic growth, as measured by GDP, is highly and positively influenced by human capital investment and export in both short and long run. In the same token, public expenditure (for productive sector), private investment, real exchange rate and household consumption are also important in determining economic growth, especially in the long run. The study finally recommends that Ethiopia should seriously work in sustaining the current progress in growth hemisphere. For this purpose the country need to promote private and public sector investment, human capital development and institutional capacity building.