Macroeconomic variables and current account balance in Namibia

Joel Eita (), Victoria Manuel and Erwin Naimhwaka

MPRA Paper from University Library of Munich, Germany

Abstract: This paper investigates macroeconomic determinants of the current account balance in Namibia. The results show that there is evidence of twin deficit hypothesis in Namibia. Evidence of twin deficit hypothesis suggest that it is important for Namibia to have fiscal discipline in order to improve its current account. Increase in capital flows, real GDP or per capita, results in a deterioration of the current account. Increase in interest rate, commodity prices and population cause the current account balance to improve. This suggest that contractionary monetary policy contributed to reduction of unproductive imports and improved the current account balance.

Keywords: current account; balance of payments; cointegration; Namibia (search for similar items in EconPapers)
JEL-codes: C19 F3 F30 F32 (search for similar items in EconPapers)
Date: 2018-03-13, Revised 2018-05-05
New Economics Papers: this item is included in nep-acc, nep-mac and nep-opm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:88818

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