IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v11y2019i5p69-75.html
   My bibliography  Save this article

The Output Gap and Potential Output in Namibia

Author

Listed:
  • Emmanuel Ziramba
  • Bernie Zaaruka
  • Johanna Mumangeni
  • Charlotte Tjeriko
  • Jaungura Kaune

Abstract

The study analysed the behaviour of potential output and output gap for the Namibian economyusing annual data from 1980 to 2016. The study employed the Hodrick-Prescott (HP) filter method and theproduction function approaches to estimate potential output before calculating the output gap. The resultssuggest an annual average growth rate of 3.6 percent in potential output. However, it has been noted that theaverage annual growth rate in potential output has been shifting during the period under review. In fact, theresults suggest an annual average growth rate of 1.6 percent between 1980 and 1985 and an increase to 2.5percent per year for the period 1986 to 1990. Potential output estimates obtained using the productionfunction approach was smooth and stable throughout the study period. The potential output estimatesobtained through the two methods follow the same cyclical movements. The output gap estimates from thetwo techniques are not different from each other, and they appear to move together.

Suggested Citation

  • Emmanuel Ziramba & Bernie Zaaruka & Johanna Mumangeni & Charlotte Tjeriko & Jaungura Kaune, 2019. "The Output Gap and Potential Output in Namibia," Journal of Economics and Behavioral Studies, AMH International, vol. 11(5), pages 69-75.
    • Handle: RePEc:rnd:arjebs:v:11:y:2019:i:5:p:69-75
    DOI: 10.22610/jebs.v11i5(J).2967
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/2967/1899
    Download Restriction: no
    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/2967
    Download Restriction: no
    File URL: https://libkey.io/10.22610/jebs.v11i5(J).2967?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Jiri Podpiera & Ms. Faezeh Raei & Ara Stepanyan, 2017. "A Fresh Look at Potential Output in Central, Eastern, and Southeastern European Countries," IMF Working Papers 2017/037, International Monetary Fund.
    2. Angelica E. Njuguna & Stephen N. Karingi & Mwangi S. Kimenyi, 2005. "Measuring Potential Output and Output Gap and Macroeconomic Policy: The Case of Kenya," Working papers 2005-45, University of Connecticut, Department of Economics.
    3. Gordon de Brouwer, 1998. "Estimating Output Gaps," RBA Research Discussion Papers rdp9809, Reserve Bank of Australia.
    4. repec:ilo:ilowps:468662 is not listed on IDEAS
    5. Harvey, A C & Jaeger, A, 1993. "Detrending, Stylized Facts and the Business Cycle," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 8(3), pages 231-247, July-Sept.
    6. Ms. Paula De Masi, 1997. "IMF Estimates of Potential Output: Theory and Practice," IMF Working Papers 1997/177, International Monetary Fund.
    7. Kanyenze, Godfrey. & Lapeyre, Frédéric,, 2012. "Growth, employment and decent work in Namibia : a situation analysis," ILO Working Papers 994686623402676, International Labour Organization.
    8. Ryadh M. Alkhareif & William A. Barnett & Nayef A. Alsadoun, 2017. "Estimating the Output Gap for Saudi Arabia," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(3), pages 81-90, March.
    9. Dana Kloudova, 2015. "Estimating Output Gap and Potential Output for Russia and Its Usefulness by Forecasting Inflation," International Journal of Economic Sciences, International Institute of Social and Economic Sciences, vol. 4(1), pages 45-59, March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. S. Adnan H. A. S. Bukhari & Safdar Ullah Khan, 2008. "Estimating Output Gap for Pakistan Economy: Structural and Statistical Approaches," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 4, pages 31-60.
    2. Odile Chagny & Jörg Döpke, 2001. "Measures of the Output Gap in the Euro-Zone: An Empirical Assessment of Selected Methods," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 70(3), pages 310-332.
    3. Paolo Guarda, 2002. "Potential output and the output gap in Luxembourg: some alternative methods," BCL working papers 4, Central Bank of Luxembourg.
    4. Mahmood-ul-Hasan Khan, 2008. "Short Run Effects of an Unanticipated Change in Monetary Policy: Interpreting Macroeconomic Dynamics in Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 4, pages 1-30.
    5. Sergey Sinelnikov-Murylev & Sergey Drobyshevsky & Maria Kazakova & Michael Alexeev, 2016. "Decomposition of Russia's GDP Growth Rates," Research Paper Series, Gaidar Institute for Economic Policy, issue 167P, pages 123-123.
    6. Michaelides, Panayotis & Milios, John, 2009. "TFP change, output gap and inflation in the Russian Federation (1994-2006)," Journal of Economics and Business, Elsevier, vol. 61(4), pages 339-352, July.
    7. Josefine Quast & Maik H. Wolters, 2022. "Reliable Real-Time Output Gap Estimates Based on a Modified Hamilton Filter," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 40(1), pages 152-168, January.
    8. Jorg Scheibe, 2003. "The Chinese Output Gap During the Reform Period 1978-2002," Economics Series Working Papers 179, University of Oxford, Department of Economics.
    9. Belegri-Roboli, Athena & Michaelides, Panayotis G., 2005. "The Basic Characteristics of the Regional Department of Attica and Estimates of Potential Output and Potential Labour," MPRA Paper 74452, University Library of Munich, Germany.
    10. David Lancaster & Peter Tulip, 2015. "Okun's Law and Potential Output," RBA Research Discussion Papers rdp2015-14, Reserve Bank of Australia.
    11. Zsolt Darvas & Gábor Vadas, 2003. "Univariate Potential Output Estimations for Hungary," MNB Working Papers 2003/8, Magyar Nemzeti Bank (Central Bank of Hungary).
    12. Michaelides, Panayotis G. & Economakis, George & Milios, John G. & Maroudas, Leonidas & Aggelis, Vassilis, 2005. "Growth, Technological Change and Output Gap in Russia," MPRA Paper 74479, University Library of Munich, Germany.
    13. Jose Sanchez-fung, 2005. "Estimating a monetary policy reaction function for the dominican republic," International Economic Journal, Taylor & Francis Journals, vol. 19(4), pages 563-577.
    14. Cécile Denis & Kieran Mc Morrow & Werner Röger, 2002. "Production function approach to calculating potential growth and output gaps - estimates for the EU Member States and the US," European Economy - Economic Papers 2008 - 2015 176, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    15. Luis Gonzalo Llosa & Shirley Miller, 2004. "Using Additional Information in Estimating the Output Gap in Peru: a Multivariate Unobserved Component Approach," Money Affairs, CEMLA, vol. 0(1), pages 57-82, January-J.
    16. Nur Ain Shahrier & Chuah Lay Lian, 2019. "Estimating Malaysia’S Output Gap: Have We Closed The Gap?," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 64(03), pages 647-674, June.
    17. Ms. Silvia Sgherri, 2005. "Long-Run Productivity Shifts and Cyclical Fluctuations: Evidence for Italy," IMF Working Papers 2005/228, International Monetary Fund.
    18. Joseph Atta-Mensah & Sawuya Nakijoba, 2019. "Estimating the Potential Output and Output Gap of Ghana," Applied Economics and Finance, Redfame publishing, vol. 6(3), pages 58-70, May.
    19. Weyerstraß, Klaus, 2001. "Methoden der Schätzung des gesamtwirtschaftlichen Produktionspotentials und der Produktionslücke," IWH Discussion Papers 142/2001, Halle Institute for Economic Research (IWH).
    20. Guido Bulligan & Lorenzo Burlon & Davide Delle Monache & Andrea Silvestrini, 2019. "Real and financial cycles: estimates using unobserved component models for the Italian economy," Statistical Methods & Applications, Springer;Società Italiana di Statistica, vol. 28(3), pages 541-569, September.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:11:y:2019:i:5:p:69-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.