Macro Data and Macroeconomic Analysis: The Relevance of a Consistent Macroeconomic Database in Ethiopia

Abstract

Designing, and implementing adjustment programmes in the context of a mixed economy requires the understanding of the macroeconomic condition in general and public and private sector interaction in particular.  However, much of the macroeconomic analyses in Ethiopia suffers hot only from the tack of accurate data sources but also from inconsistency across different sources on the one hand and analytical inconsistency within an identified source on the other.  The focus of this study is the discrepancy and inconsistency of the existing data reported by different institutions. By highlighting the problem first and outlining the relevant analytical framework, a consistent macro database is built for the period 1970- 1990 (G.C). Although the data is built using international sources the methodology can readily be applied to data from domestic sources (notably National Bank of Ethiopia, Central Statistical Authority, Ministry of Finance, and Ministry of Economic Development and Cooperation). It is also recommended that the above institutions need to co-ordinate their data in analytically consistent framework.