The Department is engaged in macro-economic research, data generation, analysis and modeling in collaboration with IDS/University of Sussex and partner public institutions. Its outputs have been useful to policy and strategy analysis.
Reliable quantitative analysis of sectoral and macro-economic policy requires sound data and appropriate analytical tools, as encompassed in the 2005-06 Ethiopia Social Accounting Matrix (SAM) presented in this paper. This SAM provides a coherent, detailed data base on production, incomes, consumption, investment, external trade and other flows in the economy. It also forms the heart of various analytical models including SAM-based fixed price multiplier models and flexible price computable general equilibrium (CGE) models. An additional advantage of the SAM is that it allows the generation of various economic indicators that can assist policy making. Thus, it is hoped that the creation and dissemination of this SAM will open new vistas for economic research on Ethiopia, as well as benefit economic policy making.
A robust measure of changes in a country’s external price competitiveness is one of the prerequisites to assess the sustainability of its current account position and the appropriateness of its exchange rate. Although there are several measures of price or cost competitiveness, the most widely used is the effective exchange rate index.
Other Outputs from the directorate