Investigating the Relationship Between Non-bank Financial Sector Development and Economic Growth in Namibia PDF Download
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Author: Kennedy Kolulyolomwene Johannes
Publisher:
ISBN:
Category : Banks and banking|zNamibia
Languages : en
Pages : 0
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Book Description
This study aims to empirically investigate whether a long-run relationship exists between the development of the non-bank financial institutions (NBFIs) sector and economic growth in Namibia and to further determine the direction of causality thereof. The study uses time series quarterly data over the period 2001:Q1 to 2019:Q4 and utilizes the Autoregressive Distributed Lag (ARDL) model to examine the long-run relationship between the variables after having carried out the unit root test employing Kwiatkowski-Phillips-Schmidt-Shin (KPSS). The empirical results of the study show a positive significant relationship between NBFIs development and per capita growth standing for Namibia economic growth both in the long run and short run. This implies that the development of NBFIs can serve as an important locomotive for fostering economic growth in the Namibian context. Surprisingly, unlike majority of the finance-growth studies that support either the supply-leading or demand-following hypothesis, the Granger causality test of this study indicate that there exists no causal linkage between the two variables of interest, which is the development of NBFIs and economic growth. The study however found a bidirectional causal relationship between GDP and labour. The Cumulative Sum (CUSUM) and Cumulative Sum of Squares (CUSUMQ) test results confirmed the structural stability of the ARDL model. Policy makers are thus advised to consider promulgating laws aimed at developing the NBFI sector and those that encourages pension funds and other institutional investors to invest more in the domestic economy.
Author: Kennedy Kolulyolomwene Johannes
Publisher:
ISBN:
Category : Banks and banking|zNamibia
Languages : en
Pages : 0
Get Book Here
Book Description
This study aims to empirically investigate whether a long-run relationship exists between the development of the non-bank financial institutions (NBFIs) sector and economic growth in Namibia and to further determine the direction of causality thereof. The study uses time series quarterly data over the period 2001:Q1 to 2019:Q4 and utilizes the Autoregressive Distributed Lag (ARDL) model to examine the long-run relationship between the variables after having carried out the unit root test employing Kwiatkowski-Phillips-Schmidt-Shin (KPSS). The empirical results of the study show a positive significant relationship between NBFIs development and per capita growth standing for Namibia economic growth both in the long run and short run. This implies that the development of NBFIs can serve as an important locomotive for fostering economic growth in the Namibian context. Surprisingly, unlike majority of the finance-growth studies that support either the supply-leading or demand-following hypothesis, the Granger causality test of this study indicate that there exists no causal linkage between the two variables of interest, which is the development of NBFIs and economic growth. The study however found a bidirectional causal relationship between GDP and labour. The Cumulative Sum (CUSUM) and Cumulative Sum of Squares (CUSUMQ) test results confirmed the structural stability of the ARDL model. Policy makers are thus advised to consider promulgating laws aimed at developing the NBFI sector and those that encourages pension funds and other institutional investors to invest more in the domestic economy.
Author: Sylvia Kinyondo
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 112
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Book Description
Author: Postrick Mushendami
Publisher: LAP Lambert Academic Publishing
ISBN: 9783838384078
Category :
Languages : en
Pages : 68
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Book Description
The financial sector in Namibia is well developed and offers a wide range of services. This assertion can be supported by the ratio of broad money supply (M2) and the private sector credit to gross domestic product (GDP), which stood at 43 and 40 per cent respectively in 2004. Despite the observed level of financial sector development, real economic growth remained low, growing at 3 per cent on average during the past 12 years. This tend to suggest that there might not be a strong long run link between finance and economic output. This book therefore examines whether there is a long run relationship between financial development and economic growth in Namibia and hence determine the direction of causality. The book employs a two step Engle-Granger method of Cointegration; and a Granger Causality Test. Moreover, the book explores the history of banking in Namibia. The book is intended for undergraduate and graduate students of monetary, financial, macroeconomics and practitioners as well.
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
ISBN: 1484347080
Category : Business & Economics
Languages : en
Pages : 71
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Book Description
The paper assesses the stability of Namibia’s financial system. Macrofinancial vulnerabilities have built up over a period of rapid economic growth in Namibia, and the financial cycle has now turned down. The sovereign debt/GDP ratio has nearly doubled since 2014 which has reinforced the already strong bank-sovereign link. The rapid rise in housing prices and household debt, banks’ large exposure to mortgages, and banks reliance on wholesale funding are sources of concern. A major decline in real estate prices would adversely affect bank capital and profitability. Financial sector oversight has been strengthened significantly since the 2006 Financial System Assessment Program, but further upgrades are needed.
Author: Milka Munepapa
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
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Book Description
The main objective of the study was to investigate the impact of financial deepening on economic growth with specific reference to the Namibian economy. The study utilized quarterly time series data from 2004 to 2019. The paper used the ratio of money supply as percentage of gross domestic product, domestic credit to private sector as percentage of gross domestic product, and bank liquid reserves to asset ratio as proxies for financial deepening, whereas gross domestic product represented economic growth. The data were tested for unit root, where stationarity outcomes indicate that the variables were integrated of order zero (I(0)) and order one (I(1)). In that light, the study conducted a cointegration test using Wald test to determine the long-run relationship between financial deepening and economic growth. The Wald test results reveal the presence of long-run relationship between the financial deepening variables and real gross domestic product. Further, the study employed autoregressive distributed lag error correction model to estimate the dynamics of the financial deepening variable to the study. Additionally, pairwise Granger causality test was applied to determine the direction of causality among financial proxies and gross domestic product. From the error correction model, the results show that the ratio of money supply as percentage of gross domestic product was significant to the model, although the impact is very minimal. Lastly, the findings did not indicate any Granger causality among financial deepening variables and economic growth in Namibia. Hence, apart from money supply, the study recommends policy makers to focus more on other indicators to boost economic growth in Namibia.
Author: World Bank
Publisher: World Bank Publications
ISBN: 0821378716
Category : Electronic books
Languages : en
Pages : 56
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Book Description
The World Bank is in the initial stages of developing a new annual series of World Bank Country Briefs. Namibia - the third report in the series - will be published in the winter of 2009. These short, country-specific reports examine the economic, social, environmental, and business landscape of developing countries, focusing on issues critical to development.OverviewPeople and PovertyEnvironmentEconomyGovernance and Business EnvironmentGlobal LinksStatistical Appendix.
Author: Mr.Pablo Emilio Guidotti
Publisher: International Monetary Fund
ISBN: 1451852452
Category : Business & Economics
Languages : en
Pages : 38
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Book Description
This paper examines the empirical relationship between long–run growth and the degree of financial development, proxied by the ratio of bank credit to the private sector as a fraction of GDP. We find that this proxy enters significantly and with a positive sign in growth regressions on a large cross–country sample, but with a negative sign using panel data for Latin America. Our findings suggest that the main channel of transmission from financial development to growth is the efficiency of investment, rather than its volume. We also present a model where the negative correlation between financial intermediation and growth results from financial liberalization in a poor regulatory environment.
Author: International Monetary Fund. African Dept.
Publisher: International Monetary Fund
ISBN: 1475559089
Category : Business & Economics
Languages : en
Pages : 29
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Book Description
This Selected Issues paper assesses the impact of alternative fiscal consolidation strategies on Namibia’s growth. It uses a model developed at the IMF to gain insights on what would be a growth-friendly composition of the fiscal adjustment. The analysis suggests that a combined strategy of revenue and expenditure measures has lower negative effects on growth than a pure expenditure-based adjustment. Structural reforms improving the efficiency of public investment can further reduce the negative effect of consolidation on growth, and potentially strengthen growth. Overall, minimizing the negative impact of fiscal consolidation on growth requires combining revenue and expenditure measures, together with fiscal structural reforms.
Author: World Bank
Publisher: World Bank Publications
ISBN: 1464814414
Category : Business & Economics
Languages : en
Pages : 241
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Book Description
Seventeen in a series of annual reports comparing business regulation in 190 economies, Doing Business 2020 measures aspects of regulation affecting 10 areas of everyday business activity.
Author: Purva Khera
Publisher: International Monetary Fund
ISBN: 1513584669
Category : Business & Economics
Languages : en
Pages : 30
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Book Description
Digital financial services have been a key driver of financial inclusion in recent years. While there is evidence that financial inclusion through traditional services has a positive impact on economic growth, do the same results carry over for digital financial inclusion? What drives digital financial inclusion? Why does it advance more in some countries but not in others? Using new indices of financial inclusion developed in Khera et. al. (2021), this paper addresses these questions for 52 developing countries. Using cross-sectional instrument variable procedure, we find that the exogenous component of digital financial inclusion is positively associated with growth in GDP per capita during 2011-2018, which suggests that digital financial inclusion can accelerate economic growth. Fractional logit and random effects empirical estimation identifies access to infrastructure, financial and digital literacy, and quality of institutions as key drivers of digital financial inclusion. These findings are then used to help inform policy recommendations in areas related to the digitization of financial services to promote financial inclusion.
