Exchange rate and foreign direct investment inflows: a case of Namibia 1990-2014
- Authors: Idhenga, Salome Ngwedha
- Date: 2016
- Subjects: Economic policy , Exchange rate pass-through -- Namibia , Investments, Foreign -- Namibia , Gross domestic product -- Namibia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/6762 , vital:21134
- Description: Purpose - this study is aimed at to investigating the effects exchange rate and other variables on foreign direct investment (FDI) inflows have on the Namibian economy. Methodology -The model comprises of the unit root test, the co-integration test, the long run equation co-efficient, an error correction model, the normality test and the stability test, were employed to estimate and interpret the results. Finding and recommendations - The results of the study have revealed that a relationship exists between exchange rate and FDI. However, this relationship is said to be statistically insignificant. It cannot therefore be used as a tool to influence FDI in Namibia. The results further indicated that GDP and trade openness were the most significant determinants of FDI in Namibia. The recommendations of this study thus suggest that the government should implement policies to diversify its production across all sectors and increase the manufacturing of finished goods, so as to enhance the GDP growth. Namibia should further advance its trade open through in-creased and fast-tracked trade agreements at both bilateral and multilateral levels.
- Full Text:
- Date Issued: 2016
- Authors: Idhenga, Salome Ngwedha
- Date: 2016
- Subjects: Economic policy , Exchange rate pass-through -- Namibia , Investments, Foreign -- Namibia , Gross domestic product -- Namibia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/6762 , vital:21134
- Description: Purpose - this study is aimed at to investigating the effects exchange rate and other variables on foreign direct investment (FDI) inflows have on the Namibian economy. Methodology -The model comprises of the unit root test, the co-integration test, the long run equation co-efficient, an error correction model, the normality test and the stability test, were employed to estimate and interpret the results. Finding and recommendations - The results of the study have revealed that a relationship exists between exchange rate and FDI. However, this relationship is said to be statistically insignificant. It cannot therefore be used as a tool to influence FDI in Namibia. The results further indicated that GDP and trade openness were the most significant determinants of FDI in Namibia. The recommendations of this study thus suggest that the government should implement policies to diversify its production across all sectors and increase the manufacturing of finished goods, so as to enhance the GDP growth. Namibia should further advance its trade open through in-creased and fast-tracked trade agreements at both bilateral and multilateral levels.
- Full Text:
- Date Issued: 2016
The role of FDI in economic growth in Namibia
- Nashidengo, Victoria Ndinoshisho Peneyambeko
- Authors: Nashidengo, Victoria Ndinoshisho Peneyambeko
- Date: 2014
- Subjects: Investments, Foreign -- Namibia , Economic development -- Namibia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/8878 , vital:26438
- Description: This report examines the role of FDI in economic growth in Namibia using annual time series data from 1980 to 2012. The relationship was explored using the VAR framework, in particular, the Granger causality. Impulse response functions and forecast error variance techniques were used for analysis. The results show that there is a positive relationship between FDI and economic growth in Namibia. The study then concluded that Namibia need more investment in other sectors such as education taking into consideration that most foreign capital is directed into the mining and manufacturing sectors. However, Namibia does not have all the necessary skill to be able to sustain the growth in GDP as a result of FDI. The study further suggested that Namibia can take advantage of export-led growth because of the positive relationship that exists between growth and export. However, there is great need to improve and diversify by focusing on exporting semi-finished and finished manufactured products instead of solid minerals and primary products that are of low value. This will enhance competitive advantage on foreign markets.
- Full Text:
- Date Issued: 2014
- Authors: Nashidengo, Victoria Ndinoshisho Peneyambeko
- Date: 2014
- Subjects: Investments, Foreign -- Namibia , Economic development -- Namibia
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/8878 , vital:26438
- Description: This report examines the role of FDI in economic growth in Namibia using annual time series data from 1980 to 2012. The relationship was explored using the VAR framework, in particular, the Granger causality. Impulse response functions and forecast error variance techniques were used for analysis. The results show that there is a positive relationship between FDI and economic growth in Namibia. The study then concluded that Namibia need more investment in other sectors such as education taking into consideration that most foreign capital is directed into the mining and manufacturing sectors. However, Namibia does not have all the necessary skill to be able to sustain the growth in GDP as a result of FDI. The study further suggested that Namibia can take advantage of export-led growth because of the positive relationship that exists between growth and export. However, there is great need to improve and diversify by focusing on exporting semi-finished and finished manufactured products instead of solid minerals and primary products that are of low value. This will enhance competitive advantage on foreign markets.
- Full Text:
- Date Issued: 2014
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