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ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA

Year 2016, Volume: 8 Issue: 2, 205 - 218, 01.12.2016

Abstract

The driving objective of the study was to measure in quantitative terms the influence of foreign direct investment on economic growth through cointegration techniques. Namibia was used as a case study. Annual dataset stretching from 1990 to 2014 was also applied. The imperative findings arising from the study constitutes the following: The study found long-run relationships among all the variables under consideration in the econometric model. The estimated long-run equation also indicates a positive association between the explanatory variables and real gross domestic product. In particular, net foreign direct capital was found to have a stronger influence on economic growth compared to openness and real foreign exchange rate. Correspondingly, a unidirectional relationship running from real exchange rate to net foreign direct investments was found. In addition, amongst the three explanatory variables used in the model, openness and net foreign direct investment contributed more towards innovations in economic growth during the forecast horizon compared to real exchange rate variable. The research paper concludes by creating opportunities for further investigations

References

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  • Meinert Printing. Windhoek, pp. 87-131. Iamsiraroj, S. and Doucouliagos, H (2015), “Does Growth Attract
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  • Date of access: 19 March 2016, pp. 1-5.
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  • Malaysia”, Munich Personal RePEc Archive MPRA Paper No. 14999.
  • Li, X. and Liu, X (2005), “Foreign direct investment and economic growth: An increasingly endogenous relationship”, World Development, Vol. 33, No 3, pp. 407.
  • Ray, S (2012), “Impact of Foreign Direct Investment on Economic Growth in
  • India: A Cointegration Analysis”, World Science Publisher, Vol. 2, No. 1, pp. 201. Ruxanda, G. and Muraru, A (2010), “FDI and economic growth: Evidence from simultaneous equation models”, Romanian J. Econ. Forecasting, Vol. 1, pp. 45
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  • Institutions Money, Vol. 19, pp. 402-413.
Year 2016, Volume: 8 Issue: 2, 205 - 218, 01.12.2016

Abstract

References

  • Agrawal, G., and Khan, A. M (2011), “Impact of FDI on GDP Growth: A Panel
  • Data Study. European Journal of Scientific Research”, Vol. 57, No. 2, pp. 257- Ayanwale, Adeolu (2007), “FDI and Economic Growth: Evidence from Nigeria”.
  • AERC Research, Paper 165. African Economic Research Consortium, Nairobi. Bank of Namibia (2006), “The assessment of foreign direct investment versus domestic investment in Namibia”, Annual symposium report, No. 8, pp. 9-10.
  • Biswas, Romita (2002), “Determinants of foreign direct investment”, Review of
  • Development Economics, Vol. 6. No. 3, pp. 500-502. Blonigen, B. and Wang, M (2005), “Inappropriate Pooling of Wealthy and Poor
  • Countries in Empirical FDI Studies”, In Moran, T.H., Graham, E., & Blomstrom, M. (Eds.). Does Foreign Direct Investment Promote Development? Institute of International Economics Press, Washington, D. C. Chaitanya V, K. and Tamazian, A (2010), “Growth effects of foreign direct investment and economic policy reforms in Latin America”, MPRA Paper, No.
  • Emin, E. M (2011), “Growth, Foreign Direct Investment, Trade and Inflation: An
  • Empirical Application on Turkey”. Middle Eastern Finance and Economics, Euro Journals, Vol. 9, pp. 137-147. Farkas, B (2012), “Absorptive Capacities and Impact of FDI on Economic
  • Growth”, DIW Berlin German Institute for Economic Research, March, pp. 1-20. Government of Namibia (2012), Annual economic development report. John
  • Meinert Printing. Windhoek, pp. 87-131. Iamsiraroj, S. and Doucouliagos, H (2015), “Does Growth Attract
  • FDI?” http://www.economics-ejournal.org/economics/journalarticles.pdf/2015-19
  • Date of access: 19 March 2016, pp. 1-5.
  • Karimi, M. S., and Zulkornain, Y (2009), “FDI and Economic Growth in
  • Malaysia”, Munich Personal RePEc Archive MPRA Paper No. 14999.
  • Li, X. and Liu, X (2005), “Foreign direct investment and economic growth: An increasingly endogenous relationship”, World Development, Vol. 33, No 3, pp. 407.
  • Ray, S (2012), “Impact of Foreign Direct Investment on Economic Growth in
  • India: A Cointegration Analysis”, World Science Publisher, Vol. 2, No. 1, pp. 201. Ruxanda, G. and Muraru, A (2010), “FDI and economic growth: Evidence from simultaneous equation models”, Romanian J. Econ. Forecasting, Vol. 1, pp. 45
  • Vu, T.B. and Noy, I (2009), “Sectoral analysis of foreign direct investment and growth in the developed countries”, Journal of International Financial Markets
  • Institutions Money, Vol. 19, pp. 402-413.
There are 19 citations in total.

Details

Other ID JA39UH59FD
Journal Section Articles
Authors

C. A. Ogbokor This is me

Publication Date December 1, 2016
Published in Issue Year 2016 Volume: 8 Issue: 2

Cite

APA Ogbokor, C. A. (2016). ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA. International Journal of Economics and Finance Studies, 8(2), 205-218.
AMA Ogbokor CA. ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA. IJEFS. December 2016;8(2):205-218.
Chicago Ogbokor, C. A. “ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA”. International Journal of Economics and Finance Studies 8, no. 2 (December 2016): 205-18.
EndNote Ogbokor CA (December 1, 2016) ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA. International Journal of Economics and Finance Studies 8 2 205–218.
IEEE C. A. Ogbokor, “ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA”, IJEFS, vol. 8, no. 2, pp. 205–218, 2016.
ISNAD Ogbokor, C. A. “ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA”. International Journal of Economics and Finance Studies 8/2 (December 2016), 205-218.
JAMA Ogbokor CA. ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA. IJEFS. 2016;8:205–218.
MLA Ogbokor, C. A. “ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA”. International Journal of Economics and Finance Studies, vol. 8, no. 2, 2016, pp. 205-18.
Vancouver Ogbokor CA. ECONOMETRIC ANALYSIS OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NAMIBIA: EVIDENCE FROM ANNUAL DATA. IJEFS. 2016;8(2):205-18.