Full Text Available
Note: Clicking the button above will open the full text document at the original institutional repository in a new window.
The impact of government debt on economic growth: An empirical investigation of Namibia
This paper examines the impact of government debt on economic growth in Namibia with annual data spanning from 1980 to 2016. The paper investigates whether public debt spurs on or promotes economic growth. We employ an Autoregressive Distribution Lag (ARDL) model that serves as an analysis of the sh...
Saved in:
| Main Author: | |
|---|---|
| Other Authors: | |
| Format: | Thesis |
| Language: | English |
| Published: |
School of Economics
2019
|
| Subjects: | |
| Tags: |
No Tags, Be the first to tag this record!
|
| _version_ | 1867613831252934656 |
|---|---|
| access_status_str | Open Access |
| author | Kaune, Jaungura |
| author2 | Mateane, Lebogang |
| author_browse | Kaune, Jaungura Mateane, Lebogang |
| author_facet | Mateane, Lebogang Kaune, Jaungura |
| author_sort | Kaune, Jaungura |
| collection | Thesis |
| description | This paper examines the impact of government debt on economic growth in Namibia with annual data spanning from 1980 to 2016. The paper investigates whether public debt spurs on or promotes economic growth. We employ an Autoregressive Distribution Lag (ARDL) model that serves as an analysis of the short and long run link between public debt and economic growth. In addition, we explore other possible indicators that are likely to affect economic growth such as government expenditure, inflation, gross fixed capital formation and openness. Our findings are consistent with the existing literature that finds a negative correlation between public debt and economic growth. The results of the long run relationship reveal that public debt has an insignificant negative effect on economic growth in Namibia, however, only government expenditure and openness have a negative effect on economic growth. In the short run, gross fixed capital formation and openness promote economic growth, whereas the effect of public debt on economic growth is negative. Following this set-up, we provide policy recommendations that future debt acquired should be for high priority projects and programs that are well reviewed, self-sustainable and can enhance the productive capacity of Namibia. Moreover, the government should take a firm stand on fiscal consolidation and policies that are pro-growth. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/29741 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:42:23.831Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2019 |
| publishDateRange | 2019 |
| publishDateSort | 2019 |
| publisher | School of Economics |
| publisherStr | School of Economics |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/29741 The impact of government debt on economic growth: An empirical investigation of Namibia Kaune, Jaungura Mateane, Lebogang Economics This paper examines the impact of government debt on economic growth in Namibia with annual data spanning from 1980 to 2016. The paper investigates whether public debt spurs on or promotes economic growth. We employ an Autoregressive Distribution Lag (ARDL) model that serves as an analysis of the short and long run link between public debt and economic growth. In addition, we explore other possible indicators that are likely to affect economic growth such as government expenditure, inflation, gross fixed capital formation and openness. Our findings are consistent with the existing literature that finds a negative correlation between public debt and economic growth. The results of the long run relationship reveal that public debt has an insignificant negative effect on economic growth in Namibia, however, only government expenditure and openness have a negative effect on economic growth. In the short run, gross fixed capital formation and openness promote economic growth, whereas the effect of public debt on economic growth is negative. Following this set-up, we provide policy recommendations that future debt acquired should be for high priority projects and programs that are well reviewed, self-sustainable and can enhance the productive capacity of Namibia. Moreover, the government should take a firm stand on fiscal consolidation and policies that are pro-growth. 2019-02-22T10:51:35Z 2019-02-22T10:51:35Z 2018 2019-02-21T13:05:28Z Master Thesis Masters MCom http://hdl.handle.net/11427/29741 eng application/pdf School of Economics Faculty of Commerce University of Cape Town |
| spellingShingle | Economics Kaune, Jaungura The impact of government debt on economic growth: An empirical investigation of Namibia |
| thesis_degree_str | Master's |
| title | The impact of government debt on economic growth: An empirical investigation of Namibia |
| title_full | The impact of government debt on economic growth: An empirical investigation of Namibia |
| title_fullStr | The impact of government debt on economic growth: An empirical investigation of Namibia |
| title_full_unstemmed | The impact of government debt on economic growth: An empirical investigation of Namibia |
| title_short | The impact of government debt on economic growth: An empirical investigation of Namibia |
| title_sort | impact of government debt on economic growth an empirical investigation of namibia |
| topic | Economics |
| url | http://hdl.handle.net/11427/29741 |
| work_keys_str_mv | AT kaunejaungura theimpactofgovernmentdebtoneconomicgrowthanempiricalinvestigationofnamibia AT kaunejaungura impactofgovernmentdebtoneconomicgrowthanempiricalinvestigationofnamibia |