Suchergebnisse

The occurrences of capital flight continue to be of great concern for many developing countries and Namibia is not an exception to this. This study aimed at examining the effect of fiscal policy on capital flight in Namibia for the period, 2009-2018. To assess this, the Auto-Regressive Distributive Lag (ARDL) bound test to cointegration technique was employed. The finding revealed that there is a long-run relationship between the selected macroeconomic factors and capital flight. In particular in the long-run government expenditure and its interaction with debt stock are found to positively affect capital flight. In the short-run however, past capital flight, previous period tax rates, previous external debt, current debt stock, previous inflation rate, as well as previous financial deepening were found to bear a positive effect on capital flight. Estimate of capital flight using the residual approach shows that Namibia lost about N$ 42 billion in 9 years through capital flight. This means on average Namibia lost close to N$ 5 billion in capital flight. These empirical findings, call for serious policy interventions in order to minimize and contain the issue of capital flight in the country.

This paper investigates the relationship between government expenditure, government revenue and public debt in Namibia by employing the data of these variables for the period 1980 to 2018. An error correction model (ECM) was employed to analyse the short-run dynamics and a positive relationship between government expenditure and government revenue was found. Similarly, there is supporting evidence that an increase in public debt will stimulate government expenditure. The error correction term indicates that any disequilibrium is corrected at an annual speed of 46.4 percent. Additionally, the pair-wise Granger causality test fails to support the spend-revenue hypothesis. However, there is supporting evidence that the tax-spend hypothesis does hold for Namibia. The study recommends that policy-makers should thoroughly review government expenditure and bring it to optimal levels in order to prevent the widening of public debt.

This paper examines how government expenditure and money supply affect unemployment in Namibia. It employs the ARDL and ECM estimation techniques to establish the underlying relationship for the period 1980-2018. The results support the hypothesis that government expenditure and money supply can be used to contain unemployment. Additionally, an evidence of both long and short-run causality from government expenditure and money supply to unemployment is found. Practical policy implications indicate that in order to effectively combat unemployment problem in Namibia, the study recommends that there is a need for policy makers to ensure that the goal of employment creation is mainstreamed in all relevant fiscal and monetary policies responses in the country. Moreover, there is also a need to identify and propose policies that can help to do away with the lack of effective policy interventions