An Examination Of The Causal Relationship Between Economic Growth, Foreign Direct Investment And Exports, In Namibia

SAARA INGO 84 PAGES (19895 WORDS) Economics Thesis

ABSTRACT

The study investigated the relationship between economic growth, exports, and FDI in

Namibia using quarterly data for the period of 1980:Q1 to 2013:Q4. The Autoregressive

Distributed Lag approach to cointegration was used to carry out the study. The study used

foreign direct investment (FDI) inflows as a proxy for FDI, export values as a ratio of GDP as

a proxy for Exports, and Real Gross Domestic Product as a proxy for economic growth.

The results from the study found that economic growth is explained by itself and exports in

the short run and that FDI does not have a role to play in explaining economic growth in the

short run. The study also established that exports, FDI and GDP do not explain economic

growth in the long run. In addition, Granger causality tests revealed bidirectional causality

between economic growth, FDI and exports