Abstract Our study examines the conventional wisdom that causality runs from selected macroeconomic variables to economic growth in Ethiopia. Time series data from 1975 to 2018 were used to determine short and long run relationships among variables. A Johansen’s Cointegration test was used to investigate the presence of long run equilibrium relationship between variables while the Vector Error Correction Model and Granger Causality were used to test the short and long run causality direction between variables. The data were derived from the National Bank of Ethiopia (2020) and World Bank report (2020). Findings reveal that domestic savings, capital formation, exchange rate and price infation have a positive and signifcant impact on long-run growth, although they have an insignifcant impact in the short run. The result of causality generated a bidirectional association running from trade openness and domestic saving to growth. Unidirectional causality is exhibited between the rest of the variables and economic growth. The estimated coefcient of error correction term was found -0.3751, showing that deviations from long run equilibrium are corrected at 37.51% annually and converge towards its long run steady state path. This indicates a signal that long run policy toward inspiring selected macro variables has a signifcant impact on growth Keywords: Macroeconomics, Economic growth, Time-series data. Impact of selected macroeconomic variables on economic growth in Ethiopia: A time series analysis Showkat A. Shah 1 , Netsanet Gizaw 2 RESEARCH ARTICLE © The Scientifc Temper. 2023 Received: 03/04/2023 Accepted: 10/05/2023 Published : 30/06/2023 1 Department of Economics, College of Business and Economics, Mizan Tepi University, Mizan, Ethiopia. 2 Department of Economics, College of Business and Economics, Mizan Tepi University, Mizan, Ethiopia. *Corresponding Author: Netsanet Gizaw, Department of Economics, College of Business and Economics, Mizan-Tepi University, Mizan, Ethiopia, E-Mail: netsigizaw2012@gmail.com How to cite this article: Shah, S.A., Gizaw, N. (2023). Impact of selected macroeconomic variables on economic growth in Ethiopia: A time series analysis. The Scientifc Temper, 14(2):533-542. Doi: 10.58414/SCIENTIFICTEMPER.2023.14.2.47 Source of support: Nil Confict of interest: None. Introducton Economic development is the major goals of every economy and needs economic growth as its requisites. Growth refers to an increase in total income, taking into account a growing population convoyed by decisive changes in the structure of the economy. Countries can experience growth when there is an upsurge in real gross domestic product (Rafy et al., 2018). Likewise, growth relies on many factors, which reflects how nations can speed up and realize their growth. Economists theoretically proved that macroeconomic variables such as the expansion of capital, The Scientifc Temper (2023) Vol. 14 (2): 533-542 E-ISSN: 2231-6396, ISSN: 0976-8653 Doi: 10.58414/SCIENTIFICTEMPER.2023.14.2.47 https://scientifctemper.com/ labor, savings and favorable international trade relation can boost economic growth at reasonably lower price infation (Gofe, 2018). Generally, the economic literature revealed some macroeconomic variables are the key determinant of growth theoretically and empirically. As a result, the dynamic relationship between macroeconomic variables and growth in developing economies continues to receive signifcant empirical attention in ever-growing literature. Most of reviewed empirical literature produced a mixed view concerning impact of macroeconomic variables on economic growth. Yet, the macroeconomic natures of the countries play a key role in determining economic growth to vary across countries. Theoretically, the conventional wisdom confirms causal relation runs from selected macroeconomic variables to economic growth, but some other empirical fndings also indicated that this does not hold true. This means that fndings on the nexus between macroeconomic variables and economic growths are still inconclusive. In Sub Sahara African countries like Ethiopia with abundant resources, inducing labor force participation, capital formation through savings, opening the economy to the external world, and achieving reasonable price infation and exchange rate are desirable to foster continued growth. It started to record a double-digit growth through its integration into economies of globalization and