An Econometric Investigation of the Impact of Foreign Trade on Economic Growth: The Case of Namibia
Ogbokor, Cyril, A
Meyer, Daniel. F
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This study investigated the impact of foreign trade on economic growth in Namibia for the period 1990-2012 using the Auto-regression Distributed Lag (ARDL) method. Further, annual time series macroeconomic data was utilised. The results show co-integrating relationships amongst the variables used in the study suggesting the possibility of a long-run relationship amongst these variables. Secondly, the study found positive relationships amongst the four variables used in the study implying that foreign trade could potentially be used to promote economic growth. The result is also in line with economic postulation. Thirdly, the model used for the study was found to be stable from an econometric point of view. Based on these results the study puts forward various policies that would make Namibian exports to have a comparative and competitive edge in international markets. In this context, the study stressed the importance of investing in the country’s export-oriented sectors for the sake of promoting foreign trade and economic growth in Namibia.
- Economics