Rural Urban Migration

MEKELLE UNIVERSITY DEPARTMENT OF ECONOMICS COLLEGE OF BUSINESS AND ECONOMICS

DETERMINANTS OF INFLATION IN ETHIOPIA: 1970-2011 AN APPLICATION OF VECTOR AUTOREGRESSIVE MODEL BY: BINIYAM MENGESHA

A senior essay submitted to the Department of Economics in partial fulfillment of the requirements for the Degree of Bachelor of Science (BSc.) in Economics.

Advisor: Kibrom Kiflu (MSc)

June, 2013 Mekelle, Ethiopia

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ACKNOWLEDGMENT

Being in a very busy schedule, finishing my1 senior paper in time has not been possible without the help of others. My first and utmost thanks go to God, who made me hopeful, courageous, and keeping me inspired for all things I have done my study. Next, I would like to express my sincere gratitude to my advisor Mr. Kibrom Kiflu, who helped me without reservations throughout my study and without whom, this paper could not be reached to this stage. I benefited a lot from fertile technical and professional guidance and constructive comments. My gratitude is also extended to the following have helped me finalizing this study and data search; NBE, MoFED and IMF. I also indebted to staff of Ethiopian Economics Association, especially macro division researchers; Mr. Solomon Mossisa and Mr. Kassahun Abera for their willing and patience to provide training on econometric software and immense support in my whole study period. Furthermore, I also owe special recognition to lecturers of department of Economics; Dr. Jayamohan M.K., Taddesse Mezgebo, Kibrewossen Abay, Abrham Moges, Dessalege Beyene and Achamyeleh Tamiru, lecturers in Mekelle University, department of Economics. My heartfelt thanks are also extended to my families, who shared pain and gave me continuous advices, moral and financial support in this endeavor. Finally I wish to express indebtedness to Friends of Economics Department (FED) club to their access of computer during my study.

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Author’s Email: biniman57@gmail.com

phone number: +251-912117287...