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Estimating national economic parameters for Namibia

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  • Humavindu, Michael N

    ()
    (Development Bank of Namibia)

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    Abstract

    This paper estimates national economic parameters to be used for project appraisal in Namibia. The shadow prices of capital, labour and foreign exchange are derived. The results suggest that the economic opportunity cost of capital is 7.2%. The economic costs of Namibian labour as a share of financial costs are 32% for urban semi- and unskilled labour, and are 54% for rural semi- and unskilled labour. The economic costs of foreign labour as a share of financial costs are 59%. The shadow exchange rate factor is estimated to be 4% for the Namibian economy.

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    Bibliographic Info

    Paper provided by Umeå University, Department of Economics in its series Umeå Economic Studies with number 744.

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    Length: 40 pages
    Date of creation: 25 Aug 2008
    Date of revision:
    Handle: RePEc:hhs:umnees:0744

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    Keywords: shadow prices; discount rates; Namibia;

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