Appendix.docx

<b>Ethiopian external debt sustainability analysis: evidence </b><b>forengle</b><b>for engle</b>[RP1] <b>- granger residual based c0- integration test</b><i>Background</i><i>The debt sustainability problem is the prime issue facing many developing countries,</i>test<i> like Ethiopia. With the best knowledge of the researcher, there have been few studies on the sustainability of public external debt outside the research path of the IMF in Ethiopia. Accordingly, this study aims to examine the external public debt sustainability of Ethiopia's economy</i><i>Methods</i><i>Engle-Granger's two-step model, which is based on two frameworks for debt sustainability between import and export as well as external public debt and export, was used to study the goal. The data spans</i>countries,<i> from 1981 to 2021.</i><i>Results</i><i>The study’s findings concluded that the unit root tests are all stationary at first differences are consistent with the study frameworks. In the first framework, the Engle-Granger residual-based co-integration test confirms the existence of co-integrated relationships between export and import. However, the long-run co-integrated coefficient is significantly different from unity,</i>spans<i> implying that the result is inconsistent with the first framework. According to the second framework, the study's findings revealed a co-integration relationship between export and import but none between export and external debt.</i><i>Conclusion</i><i>Thus, the study's findings in both frameworks conclude that external debt is not sustainable in the Ethiopian Economy</i>unity,