Investigating the causal relationship between primary commodities exports and economic growth in Namibia
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Date
2016
Journal Title
Journal ISSN
Volume Title
Publisher
Global Business Research Journals
Abstract
This paper analyses the causal relationship between primary commodities exports and
economic growth in Namibia using quarterly data for the period 1998 to 2014. Time-series
econometric techniques such as unit root, cointegration as well as Granger-causality test
within the vector auto-regression framework has been used. The results of the unit root test
showed that the variables are integrated of order one. Furthermore, the results of the
Johansen cointegration test revealed that no cointegration exists among the variable,
suggesting that there is no long-run relationship. Finally, the results of the Granger-causality
test showed that primary commodities exports do Granger-cause economic growth but
economic growth does not Granger-cause primary commodities exports. This suggests that
there is a unidirectional causality running from primary commodities export to economic
growth in the Namibian context.
Description
Keywords
Primary commodities exports, Economic growth, Namibia, Granger causality test, Cointegration
Citation
Sheefeni, J.P. S., & Simon, R. (2016). Investigating the causal relationship between primary commodities exports and economic growth in Namibia. International Review of Research in Emerging Markets and the Global Economy, 2(2), 797-808