2026-09-25T16:32:27Zhttps://repository.unam.edu.na/server/oai/request

oai:repository.unam.edu.na:11070/38332024-06-01T22:01:16Zcom_11070_3527com_11070_3313com_11070_3305col_11070_98

Likius, Naemi 2024-05-28T06:49:09Z 2024-05-28T06:49:09Z 2024 http://hdl.handle.net/11070/3833 Thesis submitted in partial fulfilment of the requirements for the degree of master of science in economics This thesis explores the impact of credit finance on agricultural productivity in Namibia, with the goal of promoting innovative, economically oriented, and modern agriculture to enhance rural living standards and drive food production. The study utilizes the bounds test (ARDL) approach to cointegration, analysing quarterly data from 2001 to 2022 to examine the short-run and long-run dynamics between credit finance and agricultural productivity. The empirical findings indicate that credit finance and prime lending rates have a significant negative impact on agricultural productivity at a 1% level, consistent with prior research. Inflation was found to negatively affect agricultural productivity but was insignificant. The stability of the model was confirmed using the CUSUM of squares, validating the use of the ARDL agricultural gross domestic product function as a target variable. The analysis reveals a unidirectional causality, with agricultural productivity predicting credit. Based on the study's findings, several major policy recommendations are proposed. Firstly, the Namibian government should focus on enhancing the banking sectors to improve farmers' access to credit and financial services, including measures such as financial inclusion, expanded banking services in rural areas, and facilitation of loan availability. Secondly, efforts should be made to develop well-functioning rural loan markets that cater specifically to the agricultural sector, through initiatives such as establishing specialized agricultural financing institutions, providing credit guarantees, and promoting financial literacy programs tailored to the agricultural sector. Thirdly, the development of township banking infrastructure in rural areas can enhance access to financial services and credit for farmers, either through banking branches or mobile banking services. Lastly, short-term and long-term plans should be formulated to support agricultural growth, including enhancing agricultural extension services, promoting technology adoption, improving market access for agricultural products, and strengthening policy and institutional support for the agricultural sector. This study's conclusions emphasize the significant role of credit finance in shaping agricultural productivity and the importance of sustained investment in enhancing productivity over time. The interdependencies among agricultural productivity, credit finance, inflation rate, and prime lending rate underscore the need for a comprehensive understanding of their dynamics en University of Namibia Agricultural Productivity Credit ARDL Cointegration Assessing the impact of credit finance on agricultural productivity in Namibia Thesisopen.access