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The finance-growth nexus in Namibia

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  • Eita, Joel Hinaunye

Abstract

This paper tests the causal relationship between financial development and economic growth in Namibia for the period 1980 to 2007. The analysis shows that there is evidence which points that financial development causes economic growth. It also shows that economic growth causes financial development. This suggests that Namibia should promote financial development or financial deepening as a strategy to enhance economic growth. At the same time, the country should also develop its real sector in order to promote economic development.

Suggested Citation

  • Eita, Joel Hinaunye, 2009. "The finance-growth nexus in Namibia," MPRA Paper 78418, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:78418
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    File URL: https://mpra.ub.uni-muenchen.de/78418/1/MPRA_paper_78418.pdf
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    More about this item

    Keywords

    financial development; economic growth; causality; Namibia;
    All these keywords.

    JEL classification:

    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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