“The Impact Of Road Traffic Accident And Institutional Quality On Economic Growth In Ethiopia:

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.