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Title An analysis of the impact of public expenditure on private investment in Namibia
Full text http://hdl.handle.net/11070/3689
Date 2023
Author(s) Nghipona, Jona Tuhafeni
Abstract A thesis submitted in partial fulfilment of the requirement for the Master of Science in Economics - This study aimed to analyse the impact of public expenditure on private investment in Namibia from the period 1990 to 2020. In seeking to meet the objective of the stud y, an Autoregressive Distributed Lag (ARDL) model was estimated after the time-series properties of the variables used were tested. The bound test co-integration approach a long with ECM was applied to achieve the objectives of the study. Results indicated that the real impact of government expenditure depends upon the type of expenditure under consideration and thus government expenditure can crowd either in or out private investment. The government expenditures on agriculture, health and transport were insignificant in the short run but showed a crowding-in (positive) impact on private investment. In addition, education expenditure along with gross domestic product expenditures show a crowding in (positive) impact on private investment in the short run. Moreover, analysis suggests that more priorities should be given to those expenditures that have complimentary impact on private investment rather than spending on expenditures that are substituting (hindering) private investment. In addition, the Namibian government should adopt consistent fiscal policy measures that can establish budget discipline, transparency and accountability aimed at increasing the standard of living by assuring an efficient public expenditure budget. Furthermore, the government should also increase expenditure on health, since it will enhance private investment through improved health status and labour productivity.
Subject(s) Public expenditure; Private investment; Gross domestic product expenditures
Language en
Publisher University of Namibia
Type of publication Thesis
Repository Windhoek - University of Namibia
Added to C-A: 2023-05-15;08:52:32