The role of FDI in economic growth in Namibia

Nashidengo, Victoria Ndinoshisho Peneyambeko

Title: The role of FDI in economic growth in Namibia
Creator: Nashidengo, Victoria Ndinoshisho Peneyambeko
Subject: Investments, Foreign -- Namibia
Subject: Economic development -- Namibia
Date Issued: 2014
Date: 2014
Type: Thesis
Type: Masters
Type: MPhil
Identifier: http://hdl.handle.net/10948/8878
Identifier: vital:26438
Description: This report examines the role of FDI in economic growth in Namibia using annual time series data from 1980 to 2012. The relationship was explored using the VAR framework, in particular, the Granger causality. Impulse response functions and forecast error variance techniques were used for analysis. The results show that there is a positive relationship between FDI and economic growth in Namibia. The study then concluded that Namibia need more investment in other sectors such as education taking into consideration that most foreign capital is directed into the mining and manufacturing sectors. However, Namibia does not have all the necessary skill to be able to sustain the growth in GDP as a result of FDI. The study further suggested that Namibia can take advantage of export-led growth because of the positive relationship that exists between growth and export. However, there is great need to improve and diversify by focusing on exporting semi-finished and finished manufactured products instead of solid minerals and primary products that are of low value. This will enhance competitive advantage on foreign markets.
Format: viii, 42 leaves
Format: pdf
Publisher: Nelson Mandela Metropolitan University
Publisher: Faculty of Business and Economic Sciences
Language: English
Rights: Nelson Mandela Metropolitan University

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