Explanation of Namibia's growth performance during 1970-1998

Abstract

Abstract by author:

The objective of this study specifically was to determine the binding constraints on growth in Namibia and to discern medium to long term policies required to foster growth. Annual time series data for the 1970-1998 period were used in the analysis. This period was chosen because of sufficient number of years necessary to produce good econometric results. The study considered only savings and foreign exchange (Trade) constraints. The model tested here is adapted from Weisskopf (1972), using Cointegration and the Error Correction Method

The major findings reveal that Namibia is faced by both the savings and foreign exchange constraints. This implies that Namibia requires foreign capital inflow to fill the investment-savings gap and imports-exports gap. Policies to strengthen investment in Namibia are recommended. Policies that can mobilise domestic savings and realise foreign exchange are emphasised