Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia

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dc.contributor.advisorKabinga, Mundia
dc.contributor.authorJakob, Alisa
dc.date.accessioned2022-01-27T14:00:08Z
dc.date.available2022-01-27T14:00:08Z
dc.date.issued2021
dc.date.updated2022-01-27T13:57:07Z
dc.description.abstractThis paper explores the link between agriculture investment and agriculture output in Namibia. The existing theory on investment and growth constitutes a basis for empirical work on investment-output nexus. Neither the neoclassical nor the new growth theories on investment have considered the growth effects of investment at sector and industry level and its implication on capital allocation, particularly for developing countries that are resource constrained. The key question addressed in this paper is whether investment in agriculture is associated with agriculture output, both at the sector and sub-sector levels. The paper adopted the ARDL bounds test model constructed with quarterly data for the period 2000 to 2020 and found that investment and agricultural output exhibit a long-run relationship. The coefficient estimates showed that public investment, development bank loans and agriculture export have a positive impact on agricultural output while inflation, lending rates and commercial bank loans have a deleterious effect. The long-run causality tests suggest that there is unidirectional causality between commercial credit expenditure and aggregate agriculture output, as well as a unidirectional causality running from exports to livestock and crop sub-sector output. Based on error correction terms, agriculture output tends to rapidly adjust to short-term disturbances, hence rebound of agriculture output to a long-run growth path can take place with minimum or no delays. This study concludes that the Keynesian hypothesis is valid for Namibia's agriculture and the direction of causality is from investment to agriculture growth. Therefore, the role of government in supporting sustainable development of the agricultural sector cannot be overemphasised.
dc.identifier.apacitationJakob, A. (2021). <i>Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia</i>. (). ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/35599en_ZA
dc.identifier.chicagocitationJakob, Alisa. <i>"Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia."</i> ., ,Faculty of Commerce ,Graduate School of Business (GSB), 2021. http://hdl.handle.net/11427/35599en_ZA
dc.identifier.citationJakob, A. 2021. Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia. . ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/35599en_ZA
dc.identifier.ris TY - Master Thesis AU - Jakob, Alisa AB - This paper explores the link between agriculture investment and agriculture output in Namibia. The existing theory on investment and growth constitutes a basis for empirical work on investment-output nexus. Neither the neoclassical nor the new growth theories on investment have considered the growth effects of investment at sector and industry level and its implication on capital allocation, particularly for developing countries that are resource constrained. The key question addressed in this paper is whether investment in agriculture is associated with agriculture output, both at the sector and sub-sector levels. The paper adopted the ARDL bounds test model constructed with quarterly data for the period 2000 to 2020 and found that investment and agricultural output exhibit a long-run relationship. The coefficient estimates showed that public investment, development bank loans and agriculture export have a positive impact on agricultural output while inflation, lending rates and commercial bank loans have a deleterious effect. The long-run causality tests suggest that there is unidirectional causality between commercial credit expenditure and aggregate agriculture output, as well as a unidirectional causality running from exports to livestock and crop sub-sector output. Based on error correction terms, agriculture output tends to rapidly adjust to short-term disturbances, hence rebound of agriculture output to a long-run growth path can take place with minimum or no delays. This study concludes that the Keynesian hypothesis is valid for Namibia's agriculture and the direction of causality is from investment to agriculture growth. Therefore, the role of government in supporting sustainable development of the agricultural sector cannot be overemphasised. DA - 2021 DB - OpenUCT DP - University of Cape Town KW - Agricultural output KW - ARDL bounds test KW - commercial loan credit KW - development loan credit KW - error correction KW - public investment KW - Namibia LK - https://open.uct.ac.za PY - 2021 T1 - Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia TI - Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia UR - http://hdl.handle.net/11427/35599 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/35599
dc.identifier.vancouvercitationJakob A. Investigating the nexus between investment in agriculture and agriculture output: a case for Namibia. []. ,Faculty of Commerce ,Graduate School of Business (GSB), 2021 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/35599en_ZA
dc.language.rfc3066eng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.subjectAgricultural output
dc.subjectARDL bounds test
dc.subjectcommercial loan credit
dc.subjectdevelopment loan credit
dc.subjecterror correction
dc.subjectpublic investment
dc.subjectNamibia
dc.titleInvestigating the nexus between investment in agriculture and agriculture output: a case for Namibia
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMBA
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