Examining the Relationship between Term Structure of Interest Rates and Economic Activity in Namibia
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Date
2016
Authors
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Journal ISSN
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Publisher
Academic research publishing group
Abstract
Abstract: This paper analysed the forecasting ability of yield-curve as a predictor of the short-run fluctuations in
economic activities in Namibia. The study employed the techniques of unit root, cointegration, impulse response
functions and forecast error variance decomposition on the quarterly data covering the period 1996 to 2015. The
results revealed a negative relationship between the term structure of interest rates and economic activities, though
statistically insignificant. This suggests that the yield-curve has no forecasting ability as a predictor of economic
activity in Namibia.
Keywords: Yield-curve; Forecasting; Economic activity; Namibia; Cointegration; Impulse response function.
Description
Keywords
Yield-curve, forecasting, Economic activity, Namibia, cointegration, impulse response function
Citation
Sheefeni, J. P. & Kaulihowa, T. (2016) Examining the Relationship between Term Structure of Interest Rates and Economic Activity in Namibia