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Examining the Relationship between Term Structure of Interest Rates and Economic Activity in Namibia

Author

Listed:
  • Johannes Peyavali Sheefeni Sheefeni

    (Department of Economics, University of Namibia, Windhoek, Namibia)

  • Teresia Kaulihowa

    (Department of Economics, University of Namibia, Windhoek, Namibia)

Abstract

This paper analysed the forecasting ability of yield-curve as a predictor of the short-run fluctuations in economic activities in Namibia. The study employed the techniques of unit root, cointegration, impulse response functions and forecast error variance decomposition on the quarterly data covering the period 1996 to 2015. The results revealed a negative relationship between the term structure of interest rates and economic activities, though statistically insignificant. This suggests that the yield-curve has no forecasting ability as a predictor of economic activity in Namibia.

Suggested Citation

  • Johannes Peyavali Sheefeni Sheefeni & Teresia Kaulihowa, 2016. "Examining the Relationship between Term Structure of Interest Rates and Economic Activity in Namibia," International Journal of Economics and Financial Research, Academic Research Publishing Group, vol. 2(9), pages 161-168, 09-2016.
    • Handle: RePEc:arp:ijefrr:2016:p:161-168
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    References listed on IDEAS

    as
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