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Savings, investment and economic growth in Namibia
This study examined the interaction between saving, investment and economic growth in Namibia. The relationship between these variables is central to Namibia’s guiding macroeconomic framework. However, empirical evidence has shown that the relationship between saving, investment and economic growth...
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| Other Authors: | |
| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2018
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| _version_ | 1867613232478289920 |
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| access_status_str | Open Access |
| author | Namoloh, Julius Nyerere |
| author2 | Charteris, Ailie |
| author_browse | Charteris, Ailie Namoloh, Julius Nyerere |
| author_facet | Charteris, Ailie Namoloh, Julius Nyerere |
| author_sort | Namoloh, Julius Nyerere |
| collection | Thesis |
| description | This study examined the interaction between saving, investment and economic growth in Namibia. The relationship between these variables is central to Namibia’s guiding macroeconomic framework. However, empirical evidence has shown that the relationship between saving, investment and economic growth depends on the country context. This makes it important to understand the policy implications of the interaction between these variables in Namibia. The specific objectives of the study were to investigate the causal relationship between saving and investment and the impact of the saving-investment relationship on economic growth in Namibia. The diagnostic testing using the Johansen cointegration test revealed a long-run relationship between the study variables with one cointegrating equation. The long run analysis was followed by Granger causality tests to understand short-run causal relationships between the variables. Impulse response functions and variance decompositions were also estimated to examine the interaction between the variables. The results from the Vector Error Correction Model showed that there was a positive long-run relationship between economic growth and investment, & savings and investment in Namibia. The Granger causality test revealed a causal relationship between saving and investment, consistent with the long-run analysis. The study implications are that a pro-saving policy can achieve increased investment. However, the long run relationship between investment and economic growth implies that investment should be made on a longer term for it to impact on economic growth. It is therefore recommended that Namibia implements policies to encourage long term investments. This can be achieved through waiving duty on capital goods and offering tax incentives to investors in strategic sectors of the economy. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/28404 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:52.713Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Graduate School of Business (GSB) |
| publisherStr | Graduate School of Business (GSB) |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/28404 Savings, investment and economic growth in Namibia Namoloh, Julius Nyerere Charteris, Ailie savings investment economic growth Namibia This study examined the interaction between saving, investment and economic growth in Namibia. The relationship between these variables is central to Namibia’s guiding macroeconomic framework. However, empirical evidence has shown that the relationship between saving, investment and economic growth depends on the country context. This makes it important to understand the policy implications of the interaction between these variables in Namibia. The specific objectives of the study were to investigate the causal relationship between saving and investment and the impact of the saving-investment relationship on economic growth in Namibia. The diagnostic testing using the Johansen cointegration test revealed a long-run relationship between the study variables with one cointegrating equation. The long run analysis was followed by Granger causality tests to understand short-run causal relationships between the variables. Impulse response functions and variance decompositions were also estimated to examine the interaction between the variables. The results from the Vector Error Correction Model showed that there was a positive long-run relationship between economic growth and investment, & savings and investment in Namibia. The Granger causality test revealed a causal relationship between saving and investment, consistent with the long-run analysis. The study implications are that a pro-saving policy can achieve increased investment. However, the long run relationship between investment and economic growth implies that investment should be made on a longer term for it to impact on economic growth. It is therefore recommended that Namibia implements policies to encourage long term investments. This can be achieved through waiving duty on capital goods and offering tax incentives to investors in strategic sectors of the economy. 2018-09-06T12:35:35Z 2018-09-06T12:35:35Z 2018 2018-09-03T06:32:06Z Thesis http://hdl.handle.net/11427/28404 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce University of Cape Town |
| spellingShingle | savings investment economic growth Namibia Namoloh, Julius Nyerere Savings, investment and economic growth in Namibia |
| title | Savings, investment and economic growth in Namibia |
| title_full | Savings, investment and economic growth in Namibia |
| title_fullStr | Savings, investment and economic growth in Namibia |
| title_full_unstemmed | Savings, investment and economic growth in Namibia |
| title_short | Savings, investment and economic growth in Namibia |
| title_sort | savings investment and economic growth in namibia |
| topic | savings investment economic growth Namibia |
| url | http://hdl.handle.net/11427/28404 |
| work_keys_str_mv | AT namolohjuliusnyerere savingsinvestmentandeconomicgrowthinnamibia |