Abstract:
This study empirically investigates the impact of road traffic accidents and institutional quality on
economic growth in Ethiopia using time series data from 1993–2023. The study employs
autoregressive distributed lag (ARDL). The bound co-integration test result shows that there is a
long-run relationship between variables. The finding of the result indicates that road traffic
accidents significantly negative affected the economic growth of Ethiopia in both the long and
short run. The study reveals that institutional quality significantly decreases the negative effects
of road traffic accidents on economic growth in Ethiopia, both in the short and long run. At the
same time, the result shows that institutional quality has a significant negative effect on economic
growth in Ethiopia in the long run. Finally, the study recommends that to increase the economic
growth of the country, the government has to deliberately and thoroughly work on reducing road
traffic accidents by enacting policies and strategies that enable it to minimize the magnitude of
road traffic accidents and also assure the existence of institutional quality in the country and in
all sectors.
