ABSTRACT
This study investigated the relationship between foreign investment flows and foreign exchange reserves in Namibia for the period 2005Q2 to 2016Q2. The approach used for this analysis was the simple regression method utilising unit root test techniques. Augmented Dickey Fuller (ADF) results showed that the two variables are stationary in levels suggesting that they are integrated of order zero. The Jarque-Bera Normality test rejected the null hypothesis at 5% and 10% that the normal distribution exists in the series. The Breusch – Godfrey serial correlation tests for autocorrelation in the errors revealed that the data is homoscedastic as desired and not heteroscedastic. Heteroscedastic is when the error term does not have constant variance. White’s (1980) test is a test of the null hypothesis of no heteroscedacity against heteroscedacity of unknown, general form. White’s (1980) test found the residuals not to have constant variance which is desirable, meaning that residuals are homoscedastic. The model was also checked for model stability to determine if there are any structural breaks present in the model. This was done by employing the CUSUM test and the solid line did not exceed the best lines which indicate that the model is a good-fit. The main results from the study found a strong positive and statistically significant relationship between foreign investment flows and foreign exchange reserves in the Namibian context.
Mbai, J (2021). Examining The Relationship Between Foreign Investment Flows And Foreign Exchange Reserves In Namibia. Afribary. Retrieved from https://afribary.com/works/examining-the-relationship-between-foreign-investment-flows-and-foreign-exchange-reserves-in-namibia
Mbai, Julia "Examining The Relationship Between Foreign Investment Flows And Foreign Exchange Reserves In Namibia" Afribary. Afribary, 20 Apr. 2021, https://afribary.com/works/examining-the-relationship-between-foreign-investment-flows-and-foreign-exchange-reserves-in-namibia. Accessed 27 Nov. 2024.
Mbai, Julia . "Examining The Relationship Between Foreign Investment Flows And Foreign Exchange Reserves In Namibia". Afribary, Afribary, 20 Apr. 2021. Web. 27 Nov. 2024. < https://afribary.com/works/examining-the-relationship-between-foreign-investment-flows-and-foreign-exchange-reserves-in-namibia >.
Mbai, Julia . "Examining The Relationship Between Foreign Investment Flows And Foreign Exchange Reserves In Namibia" Afribary (2021). Accessed November 27, 2024. https://afribary.com/works/examining-the-relationship-between-foreign-investment-flows-and-foreign-exchange-reserves-in-namibia