Thesis (M.M. (Finance & Investment)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2016 / This study investigates the dominant determinants of Foreign Direct Investment in Namibia. The second part of the study evaluates whether FDI received in Namibia is beneficial for the Namibian economy. The study uses two different methods to test for stationarity: Augmented Dickey-Fuller (ADF) and Phillips-Perron (PP). The study makes use of the Ordinary Least Square (OLS) in conjunction with the cointegration (CI) and Error Correction Models (ECM) to determine the factors that influence FDI in Namibia, using data for the period of 1990- 2014. The results show that, in the short-run, Foreign Direct Investment is significantly influenced by GDP, taxes, exchange rates and Drought occurrence. The results of the second part of the study were to test whether FDI received is beneficial for the Namibian economy. The Granger causality test was used to test this relationship. The results of the Granger causality test revealed that FDI is indeed beneficial for the economy. Hence, it is significant in explaining GDP in Namibia. The study recommends a review of the administration of the current investment system, which should highlight the role of each player in the economy. The study further recommends that a good quality of governance, reduced bureaucracy, low-interest rate and well-developed infrastructure will enhance investor’s confidence. Expansionary fiscal and monetary policies should be applied to stimulate GDP growth and to increase Foreign Direct Investment. Keywords: Foreign Direct Investment, Gross Domestic Product, Stationarity, Cointegration, Error Correction Modelling, Taxes and Exchange Rates. / GR2018

This report examines the role of FDI in economic growth in Namibia using annual time series data from 1980 to 2012. The relationship was explored using the VAR framework, in particular, the Granger causality. Impulse response functions and forecast error variance techniques were used for analysis. The results show that there is a positive relationship between FDI and economic growth in Namibia. The study then concluded that Namibia need more investment in other sectors such as education taking into consideration that most foreign capital is directed into the mining and manufacturing sectors. However, Namibia does not have all the necessary skill to be able to sustain the growth in GDP as a result of FDI. The study further suggested that Namibia can take advantage of export-led growth because of the positive relationship that exists between growth and export. However, there is great need to improve and diversify by focusing on exporting semi-finished and finished manufactured products instead of solid minerals and primary products that are of low value. This will enhance competitive advantage on foreign markets.

Thesis (doctoral)--Universität Freiburg im Breisgau. / Includes bibliographical references (p. 167-181).

Purpose - this study is aimed at to investigating the effects exchange rate and other variables on foreign direct investment (FDI) inflows have on the Namibian economy. Methodology -The model comprises of the unit root test, the co-integration test, the long run equation co-efficient, an error correction model, the normality test and the stability test, were employed to estimate and interpret the results. Finding and recommendations - The results of the study have revealed that a relationship exists between exchange rate and FDI. However, this relationship is said to be statistically insignificant. It cannot therefore be used as a tool to influence FDI in Namibia. The results further indicated that GDP and trade openness were the most significant determinants of FDI in Namibia. The recommendations of this study thus suggest that the government should implement policies to diversify its production across all sectors and increase the manufacturing of finished goods, so as to enhance the GDP growth. Namibia should further advance its trade open through in-creased and fast-tracked trade agreements at both bilateral and multilateral levels.