An Evaluation Of Development Finance And Employment Creation Since 2004 To 2014: A Case Study Of The Development Bank Of Namibia (Dbn)

Abstract

The existing studies on the relationship between development finance and employment creation provide conclusive empirical evidence. This study was conducted to evaluate the development finance and employment creation from 2004 to 2014 at the Development Bank of Namibia. This study used a sample of 17 credit and lending employees from the Development Bank of Namibia head office. Seventeen Questionnaires were distributed using a simple random sampling technique and all questionnaires were received back. This study employed SPSS (Statistical Package for the Social Services) and Microsoft excel to test the relationship between loans approval and employment creation. The study found that the variables (loans approval and employment creation) had a significant positive relationship. Regression model supports the alternative hypothesis that there is a relationship between loans approval and employment creation. The tests further indicated that various enterprises benefited from DBN loans over years especially the construction industry and that loans and employment per annum were N$ 521.59 million and 6016 jobs respectively. These findings were similar to what other researchers have discovered in similar studies for example a study by Massa (2013) which examined the linkages between development finance institutions (DFIs), employment, and productivity change and found a positive relationship between these variables. Implications, limitations and suggestions for future research are also discussed. This study suggested a sectoral or regional study to overcome aggregation of employment and loan approval in general. This study recommends that aggregation implications should be taken with necessary caution.