Research/academic paper

A Macroeconomic Demographic Model for Ethiopia: Specification, Estimation and Simulation

“The preceding simulation and estimation process showed that one can get some insight into economic demographic interactions, and that the use of demographic variables as policy instruments could yield a higher per capita income in general and per adult equivalent consumer in particular. The results are based on the assumption that the given state of technology, and the capital labour ratio, will not change significantly. The overall investment, as well as acreage planted, will increase at the same rate as in the past. If a lower fertility rate yields higher per capita GDP, the next question will be how to go about reducing the current high rate of population growth in Ethiopia. “