The impact of government debt on economic growth: An empirical investigation of Namibia

dc.contributor.advisorMateane, Lebogang
dc.contributor.authorKaune, Jaungura
dc.date.accessioned2019-02-22T10:51:35Z
dc.date.available2019-02-22T10:51:35Z
dc.date.issued2018
dc.date.updated2019-02-21T13:05:28Z
dc.description.abstractThis paper examines the impact of government debt on economic growth in Namibia with annual data spanning from 1980 to 2016. The paper investigates whether public debt spurs on or promotes economic growth. We employ an Autoregressive Distribution Lag (ARDL) model that serves as an analysis of the short and long run link between public debt and economic growth. In addition, we explore other possible indicators that are likely to affect economic growth such as government expenditure, inflation, gross fixed capital formation and openness. Our findings are consistent with the existing literature that finds a negative correlation between public debt and economic growth. The results of the long run relationship reveal that public debt has an insignificant negative effect on economic growth in Namibia, however, only government expenditure and openness have a negative effect on economic growth. In the short run, gross fixed capital formation and openness promote economic growth, whereas the effect of public debt on economic growth is negative. Following this set-up, we provide policy recommendations that future debt acquired should be for high priority projects and programs that are well reviewed, self-sustainable and can enhance the productive capacity of Namibia. Moreover, the government should take a firm stand on fiscal consolidation and policies that are pro-growth.
dc.identifier.apacitationKaune, J. (2018). <i>The impact of government debt on economic growth: An empirical investigation of Namibia</i>. (). University of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/29741en_ZA
dc.identifier.chicagocitationKaune, Jaungura. <i>"The impact of government debt on economic growth: An empirical investigation of Namibia."</i> ., University of Cape Town ,Faculty of Commerce ,School of Economics, 2018. http://hdl.handle.net/11427/29741en_ZA
dc.identifier.citationKaune, J. 2018. The impact of government debt on economic growth: An empirical investigation of Namibia. University of Cape Town.en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Kaune, Jaungura AB - This paper examines the impact of government debt on economic growth in Namibia with annual data spanning from 1980 to 2016. The paper investigates whether public debt spurs on or promotes economic growth. We employ an Autoregressive Distribution Lag (ARDL) model that serves as an analysis of the short and long run link between public debt and economic growth. In addition, we explore other possible indicators that are likely to affect economic growth such as government expenditure, inflation, gross fixed capital formation and openness. Our findings are consistent with the existing literature that finds a negative correlation between public debt and economic growth. The results of the long run relationship reveal that public debt has an insignificant negative effect on economic growth in Namibia, however, only government expenditure and openness have a negative effect on economic growth. In the short run, gross fixed capital formation and openness promote economic growth, whereas the effect of public debt on economic growth is negative. Following this set-up, we provide policy recommendations that future debt acquired should be for high priority projects and programs that are well reviewed, self-sustainable and can enhance the productive capacity of Namibia. Moreover, the government should take a firm stand on fiscal consolidation and policies that are pro-growth. DA - 2018 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PB - University of Cape Town PY - 2018 T1 - The impact of government debt on economic growth: An empirical investigation of Namibia TI - The impact of government debt on economic growth: An empirical investigation of Namibia UR - http://hdl.handle.net/11427/29741 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/29741
dc.identifier.vancouvercitationKaune J. The impact of government debt on economic growth: An empirical investigation of Namibia. []. University of Cape Town ,Faculty of Commerce ,School of Economics, 2018 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/29741en_ZA
dc.language.isoeng
dc.publisher.departmentSchool of Economics
dc.publisher.facultyFaculty of Commerce
dc.publisher.institutionUniversity of Cape Town
dc.subject.otherEconomics
dc.titleThe impact of government debt on economic growth: An empirical investigation of Namibia
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom
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