Macroeconomic determinants of private investment in Namibia
No Thumbnail Available
Date
1998
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
In the short-run an increase in public investment and real gross domestic product (real output) stimulates private investment in Namibia. However, increases in inflation and real interest rates as well as depreciation of the exchange rate were found to inhibit private investment in the short run
The central policy recommendation of this study is that the maintenance of a stable macroeconomic environment is crucial to efforts aimed at encouraging private investment and thus toward laying the foundation for sustained economic growth in Namibia. These will be derived from a low and stable inflation rate, stable and predictable exchange rate, reduction in unemployment levels brought about by increased private sector participation in the productive sector of the economy, and by limiting the role of the public sector to the provision of essential services that do not compete with the private sector for scarce credit
Description
Keywords
Economic policy, Economic planning, Economic theory