Ethiopia’s Economic Growth And Quality Of Life Nexus; Time Series Analysis

Abstract

The study conducted on Economic Growth and the Quality of Life Nexus in Ethiopia from 1981 to 2018, using time series data. The research found that economic growth generally correlates with improvements in living standards such as material consumption, urban living, education, and political rights. Quality of life indicators often show positive associations with real GDP per capita. The study used both long-run and short-run estimating methodologies for econometrics, and found that all objective indicators of quality of life have been trending upward. However, enrollment in school and per capita consumption expenditure showed a substantial relationship with economic growth. The empirical results showed a significant (at 1%) positive relationship between economic growth and quality of life indicators in the long run, while a significant (at 5%) relationship was found with per capita consumption expenditure and gross education enrollment ratio. The study also identified a considerable relationship among QOL indicators, suggesting adjustments in the short-run path of economic growth and urbanization