Financial sector development and economic growth in Namibia.
MetadataShow full item record
The main objective of the study was to determine the nature of the nexus between financial sector development and economic growth with specific reference to the amibian economy. The reason why I carried out this study is that no similar study has yet been carried out in amibia and the nature of the relationship between financial development and economic growth is still not known. This study, therefore, is the first step in attempting to provide literature that could be useful to policy makers and academics in amibia. We used the Granger causality tests to establish the relationship among the financial sector indicators and economic growth indicators after having carried out the unit root and co integration tests. The results show that the Granger causality between financial development and economic growth is by and large bidirectional. In other words, this means that when the economy grows the financial sector may respond positively and vice versa. We also found that the financial sector variable, the logarithm of the ratio of private sector credit to gross domestic product (GDP), Granger caused the real variables, logarithm of real GDP, and logarithm of real income per capita. This is in line with the conclusion above that real variables could respond favorably to financial variables. So causality in this case is running from financial variables to real sector variables. The article ended with a cautionary statement on the size of the sample used and the general availability of statistical data on the amibian economy, which could have negatively affected the authenticity of the results.
Showing items related by title, author, creator and subject.
Kaniita, Werner Simaneka (2008)This mini-thesis examines the impact and effectiveness of the Namibian ECT Bill, which is still to be passed in the Namibian parliament. The Namibia ECT Bill in its current format, will it be effective in an attempt to ...
Strohbach, Ben J. (2014)Through the BIOTA project (2000 - 2009) 21 high end weather stations meeting WMO standards have been bought for deployment in Namibia. Some of these stations are replacing older equipment at the BIOTA observatories (Jürgens ...
An investigation into the effectiveness of management and leadership of primary, combined and secondary schools in terms of policy, planning and implementation in Eheke Circuit, Oshana Education Region in Namibia Nangolo, Adda Benita (2011)The Ministry of Education in Namibia has published the standards that identified twenty – nine aspects of the conditions of a school and its work and provide a way of quantifying the quality of each of these aspects. Seven ...