The impact of foreign direct investment on Namibia’s economic growth: A time series investigation
AbstractThe current study investigates the impact of foreign direct investment on the growth of Namibia’s economy from 1990 to 2020 using the ARDL cointegration method. The results reveal that FDI, the interactive variable of FDI and trade openness, and other macroeconomic variables such as domestic...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2023-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2210857 |
| _version_ | 1827792265051897856 |
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| author | Tafirenyika Sunde |
| author_facet | Tafirenyika Sunde |
| author_sort | Tafirenyika Sunde |
| collection | DOAJ |
| description | AbstractThe current study investigates the impact of foreign direct investment on the growth of Namibia’s economy from 1990 to 2020 using the ARDL cointegration method. The results reveal that FDI, the interactive variable of FDI and trade openness, and other macroeconomic variables such as domestic investment, government consumption expenditure, human capital, a proxy for economic stability, and return on investment are responsible for Namibia’s economic growth. The article confirms the FDI-led growth and the Bhagwati hypotheses for Namibia as shown by the FDI and the interactive variable of FDI and trade openness, respectively. To reap the full benefits of FDI on economic growth in Namibia, the government must focus on improving physical infrastructure and the quality of human resources. It should also facilitate the development of an entrepreneurship culture, create a stable macroeconomic environment, and improve conditions for productive investments to accelerate economic growth and development. |
| first_indexed | 2024-03-11T17:59:23Z |
| format | Article |
| id | doaj.art-d59f80999bd845379848a416c3d11aa0 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-11T17:59:23Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-d59f80999bd845379848a416c3d11aa02023-10-17T10:51:05ZengTaylor & Francis GroupCogent Economics & Finance2332-20392023-12-0111110.1080/23322039.2023.2210857The impact of foreign direct investment on Namibia’s economic growth: A time series investigationTafirenyika Sunde0Department of Accounting, Economics and Finance, Namibia University of Science and Technology, Windhoek, NamibiaAbstractThe current study investigates the impact of foreign direct investment on the growth of Namibia’s economy from 1990 to 2020 using the ARDL cointegration method. The results reveal that FDI, the interactive variable of FDI and trade openness, and other macroeconomic variables such as domestic investment, government consumption expenditure, human capital, a proxy for economic stability, and return on investment are responsible for Namibia’s economic growth. The article confirms the FDI-led growth and the Bhagwati hypotheses for Namibia as shown by the FDI and the interactive variable of FDI and trade openness, respectively. To reap the full benefits of FDI on economic growth in Namibia, the government must focus on improving physical infrastructure and the quality of human resources. It should also facilitate the development of an entrepreneurship culture, create a stable macroeconomic environment, and improve conditions for productive investments to accelerate economic growth and development.https://www.tandfonline.com/doi/10.1080/23322039.2023.2210857Economic growthforeign direct investmenttrade opennesshuman capitalreturn on investmentgovernment consumption expenditure cointegration |
| spellingShingle | Tafirenyika Sunde The impact of foreign direct investment on Namibia’s economic growth: A time series investigation Cogent Economics & Finance Economic growth foreign direct investment trade openness human capital return on investment government consumption expenditure cointegration |
| title | The impact of foreign direct investment on Namibia’s economic growth: A time series investigation |
| title_full | The impact of foreign direct investment on Namibia’s economic growth: A time series investigation |
| title_fullStr | The impact of foreign direct investment on Namibia’s economic growth: A time series investigation |
| title_full_unstemmed | The impact of foreign direct investment on Namibia’s economic growth: A time series investigation |
| title_short | The impact of foreign direct investment on Namibia’s economic growth: A time series investigation |
| title_sort | impact of foreign direct investment on namibia s economic growth a time series investigation |
| topic | Economic growth foreign direct investment trade openness human capital return on investment government consumption expenditure cointegration |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2210857 |
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