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Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia
This paper explores the link between agriculture investment and agriculture output in Namibia. The existing theory on investment and growth constitutes a basis for empirical work on investment-output nexus. Neither the neoclassical nor the new growth theories on investment have considered the growth...
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| Format: | Thesis |
| Language: | English |
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Graduate School of Business (GSB)
2022
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| _version_ | 1867613315949133824 |
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| access_status_str | Open Access |
| author | Jakob, Alisa |
| author2 | Kabinga, Mundia |
| author_browse | Jakob, Alisa Kabinga, Mundia |
| author_facet | Kabinga, Mundia Jakob, Alisa |
| author_sort | Jakob, Alisa |
| collection | Thesis |
| description | This paper explores the link between agriculture investment and agriculture output in Namibia. The existing theory on investment and growth constitutes a basis for empirical work on investment-output nexus. Neither the neoclassical nor the new growth theories on investment have considered the growth effects of investment at sector and industry level and its implication on capital allocation, particularly for developing countries that are resource constrained. The key question addressed in this paper is whether investment in agriculture is associated with agriculture output, both at the sector and sub-sector levels. The paper adopted the ARDL bounds test model constructed with quarterly data for the period 2000 to 2020 and found that investment and agricultural output exhibit a long-run relationship. The coefficient estimates showed that public investment, development bank loans and agriculture export have a positive impact on agricultural output while inflation, lending rates and commercial bank loans have a deleterious effect. The long-run causality tests suggest that there is unidirectional causality between commercial credit expenditure and aggregate agriculture output, as well as a unidirectional causality running from exports to livestock and crop sub-sector output. Based on error correction terms, agriculture output tends to rapidly adjust to short-term disturbances, hence rebound of agriculture output to a long-run growth path can take place with minimum or no delays. This study concludes that the Keynesian hypothesis is valid for Namibia's agriculture and the direction of causality is from investment to agriculture growth. Therefore, the role of government in supporting sustainable development of the agricultural sector cannot be overemphasised. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/35599 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:34:10.861Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2022 |
| publishDateRange | 2022 |
| publishDateSort | 2022 |
| 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:11427/35599 Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia Jakob, Alisa Kabinga, Mundia Agricultural output ARDL bounds test commercial loan credit development loan credit error correction public investment Namibia This paper explores the link between agriculture investment and agriculture output in Namibia. The existing theory on investment and growth constitutes a basis for empirical work on investment-output nexus. Neither the neoclassical nor the new growth theories on investment have considered the growth effects of investment at sector and industry level and its implication on capital allocation, particularly for developing countries that are resource constrained. The key question addressed in this paper is whether investment in agriculture is associated with agriculture output, both at the sector and sub-sector levels. The paper adopted the ARDL bounds test model constructed with quarterly data for the period 2000 to 2020 and found that investment and agricultural output exhibit a long-run relationship. The coefficient estimates showed that public investment, development bank loans and agriculture export have a positive impact on agricultural output while inflation, lending rates and commercial bank loans have a deleterious effect. The long-run causality tests suggest that there is unidirectional causality between commercial credit expenditure and aggregate agriculture output, as well as a unidirectional causality running from exports to livestock and crop sub-sector output. Based on error correction terms, agriculture output tends to rapidly adjust to short-term disturbances, hence rebound of agriculture output to a long-run growth path can take place with minimum or no delays. This study concludes that the Keynesian hypothesis is valid for Namibia's agriculture and the direction of causality is from investment to agriculture growth. Therefore, the role of government in supporting sustainable development of the agricultural sector cannot be overemphasised. 2022-01-27T14:00:08Z 2022-01-27T14:00:08Z 2021 2022-01-27T13:57:07Z Master Thesis Masters MBA http://hdl.handle.net/11427/35599 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce |
| spellingShingle | Agricultural output ARDL bounds test commercial loan credit development loan credit error correction public investment Namibia Jakob, Alisa Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia |
| thesis_degree_str | Master's |
| title | Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia |
| title_full | Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia |
| title_fullStr | Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia |
| title_full_unstemmed | Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia |
| title_short | Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia |
| title_sort | investigating the nexus between investment in agriculture and agriculture output a case for namibia |
| topic | Agricultural output ARDL bounds test commercial loan credit development loan credit error correction public investment Namibia |
| url | http://hdl.handle.net/11427/35599 |
| work_keys_str_mv | AT jakobalisa investigatingthenexusbetweeninvestmentinagricultureandagricultureoutputacasefornamibia |