ABSTRACT
This paper examined the impact of public debt on economic growth of Namibia for the period 2003 to 2016 using quarterly time series data on GDP growth as a proxy for economic growth; external debt and domestic debt. Time series properties were tested for stationarity using the Augmented Dickey-Fuller test. Johannsen Cointegration test found no long run relationship among the variables under study. The study employed Toda-Yamamoto Granger causality tests following a VAR framework and results revealed a no causal relationship between public debt and GDP growth. The variance decomposition analysis shows that domestic debt exerts more pressure on GDP growth in Namibia. The findings of impulse response function show that the response of GDP growth to public debt was unstable. The study recommend that instead of borrowing, policy makers should develop and implement strategies that increase revenue for the government to fill the deficit gap. Government should only consider borrowing for very high. priority projects that are well appraised and self-sustained that can contribute to economic growth, generating enough returns to upset the debt servicing. Lastly, effective and efficient utilization of public resources is needed to ensure that the future generation's welfare or economic production is not being mortgaged in continuous indebtedness.
IJTULA, A (2021). An Analysis Of The Impact Of Public Debt On Economic Growth Of Namibia. Afribary. Retrieved from https://afribary.com/works/an-analysis-of-the-impact-of-public-debt-on-economic-growth-of-namibia
IJTULA, ALOSIA "An Analysis Of The Impact Of Public Debt On Economic Growth Of Namibia" Afribary. Afribary, 20 Apr. 2021, https://afribary.com/works/an-analysis-of-the-impact-of-public-debt-on-economic-growth-of-namibia. Accessed 24 Nov. 2024.
IJTULA, ALOSIA . "An Analysis Of The Impact Of Public Debt On Economic Growth Of Namibia". Afribary, Afribary, 20 Apr. 2021. Web. 24 Nov. 2024. < https://afribary.com/works/an-analysis-of-the-impact-of-public-debt-on-economic-growth-of-namibia >.
IJTULA, ALOSIA . "An Analysis Of The Impact Of Public Debt On Economic Growth Of Namibia" Afribary (2021). Accessed November 24, 2024. https://afribary.com/works/an-analysis-of-the-impact-of-public-debt-on-economic-growth-of-namibia