An analysis of the causal relationship between agricultural exports and economic growth in Namibia
This paper investigates the Granger causality between agricultural exports and economic growth in Namibia over the period 1998 – 2016. The study used the simple pairwise Granger causality to determine the existence of such a relationship. An Augmented Dickey-Fuller (ADF) test was used to test for stationarity. The results of the study found that there was no causality running from either economic growth or agricultural exports as both variables are independent. Based on the findings, it is recommended that government should promote and diversify agricultural exports in order to promote economic health and increase the benefits of this sector by encouraging the concept of farming. There is also a need to develop policies to give confidence to both domestic and foreign investors in assisting the agricultural sector. It is clear from the study that agricultural exports do not contribute to economic growth thus the direct contribution of primary exports to economic growth needs to be considered in relation to the degree of impact.
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