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Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia
Following the extended version of the buffer stock model, this empirical analysis broadly focuses on assessing the macroeconomic determinants of the demand for international reserves in Namibia. The study employs the autoregressive distributed lag (ARDL) approach to cointegration, covering the perio...
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| Format: | Thesis |
| Language: | Eng |
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School of Economics
2025
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| _version_ | 1867613243145453568 |
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| access_status_str | Open Access |
| author | Esterhuizen, Andy |
| author2 | Mpofu, Trust |
| author_browse | Esterhuizen, Andy Mpofu, Trust |
| author_facet | Mpofu, Trust Esterhuizen, Andy |
| author_sort | Esterhuizen, Andy |
| collection | Thesis |
| description | Following the extended version of the buffer stock model, this empirical analysis broadly focuses on assessing the macroeconomic determinants of the demand for international reserves in Namibia. The study employs the autoregressive distributed lag (ARDL) approach to cointegration, covering the period 2000q1 to 2021q4. Empirical results reveal the existence of a long-run relationship between reserve demand and the regressors, that is, broad money, foreign direct investment, real GDP and opportunity cost. The significant finding on opportunity cost is an indication that the accumulation of reserves is motivated by returns to assets in Namibia. Focusing on the main thrust of the study, we failed to validate the existence of the theory of the monetary approach to the balance of payment signified by the term monetary disequilibrium. Short-run results are corroborated by a negative and statistically significant error correction term. The CUSUM and CUSUMSQ tests suggest stability in Namibia's reserve demand function over the study period. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/40902 |
| institution | University of Cape Town (South Africa) |
| language | Eng |
| last_indexed | 2026-06-10T12:33:01.081Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2025 |
| publishDateRange | 2025 |
| publishDateSort | 2025 |
| 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:11427/40902 Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia Esterhuizen, Andy Mpofu, Trust Commerce Following the extended version of the buffer stock model, this empirical analysis broadly focuses on assessing the macroeconomic determinants of the demand for international reserves in Namibia. The study employs the autoregressive distributed lag (ARDL) approach to cointegration, covering the period 2000q1 to 2021q4. Empirical results reveal the existence of a long-run relationship between reserve demand and the regressors, that is, broad money, foreign direct investment, real GDP and opportunity cost. The significant finding on opportunity cost is an indication that the accumulation of reserves is motivated by returns to assets in Namibia. Focusing on the main thrust of the study, we failed to validate the existence of the theory of the monetary approach to the balance of payment signified by the term monetary disequilibrium. Short-run results are corroborated by a negative and statistically significant error correction term. The CUSUM and CUSUMSQ tests suggest stability in Namibia's reserve demand function over the study period. 2025-02-10T12:53:15Z 2025-02-10T12:53:15Z 2024 2025-02-10T12:41:54Z Thesis / Dissertation Masters MCom http://hdl.handle.net/11427/40902 Eng application/pdf School of Economics Faculty of Commerce University of Cape Town |
| spellingShingle | Commerce Esterhuizen, Andy Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia |
| thesis_degree_str | Master's |
| title | Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia |
| title_full | Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia |
| title_fullStr | Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia |
| title_full_unstemmed | Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia |
| title_short | Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia |
| title_sort | macroeconomic determinants of the demand for international reserves and monetary disequilibrium in namibia |
| topic | Commerce |
| url | http://hdl.handle.net/11427/40902 |
| work_keys_str_mv | AT esterhuizenandy macroeconomicdeterminantsofthedemandforinternationalreservesandmonetarydisequilibriuminnamibia |