Potential Capacity of Economic Growth in Ethiopia Using Ardl Cointegration Symmetric and Asymmetric Analysis

This paper is aimed to examine the Ethiopian economy using linear symmetric autoregressive distributed lags (ARDL) and non-linear ARDL models over the period 1981-2020. The empirical findings indicate that asymmetric non-linear ARDL model as robust results reveal that there is a unidirectional causality running from a negative downward movement of the agriculture sector to real GDP. Thus we suggest that the empirical evidence obtained through asymmetric models seems to be superior to symmetric models, ensuring more efficient policy-making for the economy to be potentially capable in achieving all inclusive and resilient sustainable economic growth; agriculture must be a leading sector