The direction of causal relationship between financial development and economic growth in Namibia PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download The direction of causal relationship between financial development and economic growth in Namibia PDF full book. Access full book title The direction of causal relationship between financial development and economic growth in Namibia by Abel Ndafetwa Sindano. Download full books in PDF and EPUB format.
Author: Abel Ndafetwa Sindano
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 88
Get Book Here
Book Description
Author: Abel Ndafetwa Sindano
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 88
Get Book Here
Book Description
Author: Postrick Mushendami
Publisher: LAP Lambert Academic Publishing
ISBN: 9783838384078
Category :
Languages : en
Pages : 68
Get Book Here
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: 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: Milka Munepapa
Publisher:
ISBN:
Category :
Languages : en
Pages : 0
Get Book Here
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: Sylvia Kinyondo
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 112
Get Book Here
Book Description
Author: Erasmus Hyera
Publisher:
ISBN:
Category :
Languages : en
Pages : 27
Get Book Here
Book Description
This paper examines causality relationship between financial development and economic growth in Tanzania over the period 1980 to 2012. In time series context, recently econometric techniques were used; namely Augmented Dickey and Fuller test (ADF) for unit roots test, Johansen test for Co-intergration test, Vector error correction model (VECM) tested for short run and long run causality, a pairwise Granger causality test used to establish the direction of causality and Variance decomposition (VD) under VAR framework applied for validating strengths of findings outside the estimated sampling period. In overall empirical findings can be summarized as follows. Firstly, there is long-run relationship between financial development and economic growth. Secondly, granger causality test suggests economic growth causes financial development in a short-run when broad money to nominal GDP and liquidity liability to nominal GDP used, however when credit to private sector to nominal GDP was used findings confirmed evidence of bidirectional causality between financial development and economic growth, and in a long-run causality run only from Economic growth to financial development even in outside the estimated sampling period. Thirdly, financial sector has been effective in promoting economic growth in a short run only and economic growth variable was the most exogenous leading variable than others suggesting, financial sector has played little role in promoting economic growth in Tanzania. Lastly, capital accumulation channel via gross domestic investments to nominal GDP links financial development and economic growth in a short run only, suggesting long-term financial infrastructures that are necessary for successful promoting investments for spurring economic growth still remain weak in Tanzania. These findings are contrary to the convectional results favored only supply view. Although study has confirmed mixed results on the direction of causality between financial development and economic growth in Tanzania, in view of feedback effect results, study recommend more efforts should be devoted to the deepening of financial sector by enhancing competition, improving business environment, investing on human resources and legal environment.
Author: Abiatar Andreas
Publisher:
ISBN:
Category : Credit
Languages : en
Pages : 100
Get Book Here
Book Description
Author: Saara Ingo
Publisher:
ISBN:
Category : Dissertations, Academic
Languages : en
Pages : 150
Get Book Here
Book Description
Author: Dedy Ramdhani
Publisher:
ISBN:
Category :
Languages : en
Pages :
Get Book Here
Book Description
Author: Tjizomundu Kavetu
Publisher:
ISBN:
Category : Infrastructure development |zNamibia
Languages : en
Pages : 0
Get Book Here
Book Description
The study investigated the causal relationship between infrastructure development and economic growth in Namibia for the period Q11991- Q42020. Data used was sourced from the World Bank development indicators, Namibia Statistics Agency as well as COMSTAT and was converted to quarterly data using EViews. Time-series econometric techniques such as unit root, ARDL bound test as well as VAR framework has been used. The results of the ARDL bounds test revealed that there is a long run relationship between infrastructure development and economic growth. The vector error correction provided both short and long run estimates. The findings revealed a positive long run and short run relationship between infrastructure development and economic growth in Namibia. The study recommends that the Namibian government needs to increase infrastructure funding in Namibia, enforce monitoring and evaluation and promote Public Private Partnership (PPP).
