Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia

dc.contributor.advisorMpofu, Trust
dc.contributor.authorEsterhuizen, Andy
dc.date.accessioned2025-02-10T12:53:15Z
dc.date.available2025-02-10T12:53:15Z
dc.date.issued2024
dc.date.updated2025-02-10T12:41:54Z
dc.description.abstractFollowing 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.
dc.identifier.apacitationEsterhuizen, A. (2024). <i>Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia</i>. (). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/40902en_ZA
dc.identifier.chicagocitationEsterhuizen, Andy. <i>"Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia."</i> ., University of Cape Town ,Faculty of Commerce ,School of Economics, 2024. http://hdl.handle.net/11427/40902en_ZA
dc.identifier.citationEsterhuizen, A. 2024. Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia. . University of Cape Town ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/40902en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Esterhuizen, Andy AB - 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. DA - 2024 DB - OpenUCT DP - University of Cape Town KW - Commerce LK - https://open.uct.ac.za PB - University of Cape Town PY - 2024 T1 - Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia TI - Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia UR - http://hdl.handle.net/11427/40902 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/40902
dc.identifier.vancouvercitationEsterhuizen A. Macroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia. []. University of Cape Town ,Faculty of Commerce ,School of Economics, 2024 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/40902en_ZA
dc.language.rfc3066Eng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subjectCommerce
dc.titleMacroeconomic determinants of the demand for international reserves and monetary disequilibrium in Namibia
dc.typeThesis / Dissertation
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMCom
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