Examining the causal relationship between private sector credit extended and economic growth in Namibia

This study examined the causal relationship between Private Sector Credit Extension (PSCE) and Economic growth in Namibia. The study used the quarterly data covering the period from 2000:Q1-2017:Q4. The variables employed were Gross Domestic Product (GDP) growth, Private Sector Credit Extended, Broad Money Supply (M2) and lending rates. The study employed co-integration tests on different sets of variables used to examine long run relationship. Granger causality tests established the direction of the relationships between the variables. The results revealed a stable long run relationship between economic growth, and credit extension, with economic growth being the dependent variable. The Granger causality test results showed evidence of unidirectional causal relationship running from PSCE to economic growth and from M2 to economic growth. The findings of this study provide opportunities for further research in this area, given the limited body of empirical literature in existence at present. Further studies to assess the responsiveness of Private Sector Credit Extended to Monetary policy in Namibia are recommended.

Grantor dc:publisher

University of Namibia

Year dc:date.issued

2018

Author dc:creator

• Andreas, Abiatar

• Economic growth

Language dc:language.iso

en

Handle dc:identifier.uri

http://hdl.handle.net/11070/2451

OAI identifier oai:identifier

oai:repository.unam.edu.na:11070/2451