DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH?
Introduction: Major activities of private sector banks promote changes in a country's economic progress. Many studies have concentrated on the general policy of customer service. As a result, the goal of the study is to look into the impact of private banks on Ethiopia's Gross Domestic Pr...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Fakultas Ekonomi dan Bisnis, Universitas Airlangga
2022-05-01
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| Series: | Jurnal Ekonomi dan Bisnis Airlangga |
| Online Access: | https://e-journal.unair.ac.id/JEBA/article/view/36232 |
| _version_ | 1797272645279940608 |
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| author | Gemechu Gadisa Getu Tigre |
| author_facet | Gemechu Gadisa Getu Tigre |
| author_sort | Gemechu Gadisa |
| collection | DOAJ |
| description |
Introduction: Major activities of private sector banks promote changes in a country's economic progress. Many studies have concentrated on the general policy of customer service. As a result, the goal of the study is to look into the impact of private banks on Ethiopia's Gross Domestic Product (GDP) growth.
Methods: Time-series data of the National Bank from 2011 to 2020 is studied using a dynamic-factor model that is flexible for multi-variable autoregressive data.
Results: The result indicates that mobilization of deposits and domestic investment have a strong positive impact on Gross Domestic Product (GDP), whereas foreign exchange and credit services have a significant negative impact.
Conclusion and suggestion: Private banks play an important role in Ethiopia's GDP growth. Therefore, in order to boost economic growth, banks should collect deposits from all over Ethiopia and use them to fund viable investment initiatives.
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| first_indexed | 2024-03-07T14:32:19Z |
| format | Article |
| id | doaj.art-c3b6a12ca0644ca6a2f2dc06d31ef0bf |
| institution | Directory Open Access Journal |
| issn | 2338-2686 2597-4564 |
| language | English |
| last_indexed | 2024-03-07T14:32:19Z |
| publishDate | 2022-05-01 |
| publisher | Fakultas Ekonomi dan Bisnis, Universitas Airlangga |
| record_format | Article |
| series | Jurnal Ekonomi dan Bisnis Airlangga |
| spelling | doaj.art-c3b6a12ca0644ca6a2f2dc06d31ef0bf2024-03-06T00:49:28ZengFakultas Ekonomi dan Bisnis, Universitas AirlanggaJurnal Ekonomi dan Bisnis Airlangga2338-26862597-45642022-05-0132110.20473/jeba.V32I12022.103-11734273DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? Gemechu Gadisa0Getu Tigre1Arsi University and Melkasa Agricultural Research Center department of Extension Economics, Adama, EthiopiaAssistant Professor Dr. Instructor at Arsi University College of Economics and Business, Asela, Ethiopia Introduction: Major activities of private sector banks promote changes in a country's economic progress. Many studies have concentrated on the general policy of customer service. As a result, the goal of the study is to look into the impact of private banks on Ethiopia's Gross Domestic Product (GDP) growth. Methods: Time-series data of the National Bank from 2011 to 2020 is studied using a dynamic-factor model that is flexible for multi-variable autoregressive data. Results: The result indicates that mobilization of deposits and domestic investment have a strong positive impact on Gross Domestic Product (GDP), whereas foreign exchange and credit services have a significant negative impact. Conclusion and suggestion: Private banks play an important role in Ethiopia's GDP growth. Therefore, in order to boost economic growth, banks should collect deposits from all over Ethiopia and use them to fund viable investment initiatives. https://e-journal.unair.ac.id/JEBA/article/view/36232 |
| spellingShingle | Gemechu Gadisa Getu Tigre DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? Jurnal Ekonomi dan Bisnis Airlangga |
| title | DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? |
| title_full | DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? |
| title_fullStr | DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? |
| title_full_unstemmed | DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? |
| title_short | DO PRIVATE BANKS AFFECT ETHIOPIA'S ECONOMIC GROWTH? |
| title_sort | do private banks affect ethiopia s economic growth |
| url | https://e-journal.unair.ac.id/JEBA/article/view/36232 |
| work_keys_str_mv | AT gemechugadisa doprivatebanksaffectethiopiaseconomicgrowth AT getutigre doprivatebanksaffectethiopiaseconomicgrowth |