IDEAS home Printed from https://ideas.repec.org/a/rnd/arjebs/v12y2020i4p73-83.html
   My bibliography  Save this article

Investigating the Effects of Government Expenditure and Money Supply on Unemployment in Namibia

Author

Listed:
  • Wilhelmine Naapopye Shigwedha
  • Teresia Kaulihowa

Abstract

This paper examines how government expenditure and money supply affect unemployment in Namibia. It employs the ARDL and ECM estimation techniques to establish the underlying relationship for the period 1980-2018. The results support the hypothesis that government expenditure and money supply can be used to contain unemployment. Additionally, an evidence of both long and short-run causality from government expenditure and money supply to unemployment is found. Practical policy implications indicate that in order to effectively combat unemployment problem in Namibia, the study recommends that there is a need for policy makers to ensure that the goal of employment creation is mainstreamed in all relevant fiscal and monetary policies responses in the country. Moreover, there is also a need to identify and propose policies that can help to do away with the lack of effective policy interventions

Suggested Citation

  • Wilhelmine Naapopye Shigwedha & Teresia Kaulihowa, 2020. "Investigating the Effects of Government Expenditure and Money Supply on Unemployment in Namibia," Journal of Economics and Behavioral Studies, AMH International, vol. 12(4), pages 73-83.
  • Handle: RePEc:rnd:arjebs:v:12:y:2020:i:4:p:73-83
    DOI: 10.22610/jebs.v12i4(J).3004
    as

    Download full text from publisher

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3004/1958
    Download Restriction: no

    File URL: https://ojs.amhinternational.com/index.php/jebs/article/view/3004
    Download Restriction: no

    File URL: https://libkey.io/10.22610/jebs.v12i4(J).3004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Michael Wickens, 2008. "The Centralized Economy, from Macroeconomic Theory: A Dynamic General Equilibrium Approach," Introductory Chapters, in: Macroeconomic Theory: A Dynamic General Equilibrium Approach, Princeton University Press.
    2. Michael Wickens, 2008. "Imperfectly Flexible Prices, from Macroeconomic Theory: A Dynamic General Equilibrium Approach," Introductory Chapters, in: Macroeconomic Theory: A Dynamic General Equilibrium Approach, Princeton University Press.
    3. Holmlund, Bertil & Alexius, Annika, 2008. "Monetary Policy and Swedish Unemployment Fluctuations," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 2, pages 1-25.
    4. Tafirenyika Sunde & Olusegun A. Akanbi, 2016. "Sources of unemployment in Namibia: an application of the structural VAR approach," International Journal of Sustainable Economy, Inderscience Enterprises Ltd, vol. 8(2), pages 125-143.
    5. Hayek, F. A., 2012. "Hayek on Hayek," University of Chicago Press Economics Books, University of Chicago Press, edition 1, number 9780226321202 edited by Kresge, Stephen & Wenar, Leif, June.
    6. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    7. Joseph P. Byrne & Roger Perman, 2006. "Unit Roots and Structural Breaks: A Survey of the Literature," Working Papers 2006_10, Business School - Economics, University of Glasgow.
    8. Athanasios Tagkalakis, 2013. "The unemployment effects of fiscal policy: recent evidence from Greece," IZA Journal of European Labor Studies, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 2(1), pages 1-32, December.
    9. Tafirenyika SUNDE, 2015. "The effects of monetary policy on unemployment in Namibia," Journal of Economic and Social Thought, KSP Journals, vol. 2(4), pages 256-274, December.
    10. Luc Laeven & Mario Draghi & Andreas Dombret & Ignazio Angeloni & Sergio Nicoletti-Altimari & Felix Hufeld & Ludger Schuknecht & Hendrik Ritter & Christian Thimann & Josef A. Korte & Sascha Steffen & E, 2016. "The SSM at 1," SUERF Studies, SUERF - The European Money and Finance Forum, number 2016/3 edited by Jens Ulbrich, Carl-Christoph Hedrich and Morten Balling, May.
    11. Michael Wickens, 2008. "Asset Pricing and Macroeconomics, from Macroeconomic Theory: A Dynamic General Equilibrium Approach," Introductory Chapters, in: Macroeconomic Theory: A Dynamic General Equilibrium Approach, Princeton University Press.
    12. repec:ksp:journ3:v:1:y:2015:i:4:p:256-274 is not listed on IDEAS
    13. Thomas M. Humphrey, 1974. "The quantity theory of money : its historical evolution and role in policy debates," Economic Review, Federal Reserve Bank of Richmond, vol. 60(May), pages 2-19.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aimola, Akingbade U & Odhiambo, Nicholas M, 2021. "Public debt and inflation: Empirical evidence from Ghana," Working Papers 27063, University of South Africa, Department of Economics.
    2. Akingbade U. Aimola & Nicholas M. Odhiambo, "undated". "Public Debt and Inflation: Empirical Evidence from Ghana," Working Papers AESRIWP06, African Economic and Social Research Institute (AESRI).
    3. Cahyadin, Malik & Sarmidi, Tamat, 2019. "The Impact of Foreign Direct Investment, Labour Force, and External Debt on Economic Growth in Indonesia and Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 53(1), pages 171-185.
    4. DJINKPO, Medard, 2019. "A DSGE model for Fiscal Policy Analysis in The Gambia," MPRA Paper 97874, University Library of Munich, Germany, revised 30 Dec 2019.
    5. Pedro Garcia Duarte, 2015. "From real business cycle and new Keynesian to DSGE Macroeconomics: facts and models in the emergence of a consensus," Working Papers, Department of Economics 2015_05, University of São Paulo (FEA-USP).
    6. Olkhov, Victor, 2023. "Economic Theory as Successive Approximations of Statistical Moments," MPRA Paper 118722, University Library of Munich, Germany.
    7. Shafik Hebous, 2011. "The Effects Of Discretionary Fiscal Policy On Macroeconomic Aggregates: A Reappraisal," Journal of Economic Surveys, Wiley Blackwell, vol. 25(4), pages 674-707, September.
    8. Matthew Canzoneri & Robert Cumby, 2008. "Macroeconomic Implications of a Key Currency," CDMA Conference Paper Series 0807, Centre for Dynamic Macroeconomic Analysis.
    9. Vladimir Zybatov, 2018. "Strategic Planning of Energy-Efficient Development of a Region of the Russian Federation," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 941-954.
    10. Plushchevskaya, Y., 2017. "A Basic Neomarxist Model of Economic Fluctuations," Journal of the New Economic Association, New Economic Association, vol. 35(3), pages 53-69.
    11. Edoardo Gaffeo & Mauro Gallegati & Umberto Gostoli, 2015. "An agent-based “proof of principle” for Walrasian macroeconomic theory," Computational and Mathematical Organization Theory, Springer, vol. 21(2), pages 150-183, June.
    12. Filip Premik & Ewa Stanisławska, 2017. "The Impact of Inflation Expectations on Polish Consumers’ Spending and Saving," Eastern European Economics, Taylor & Francis Journals, vol. 55(1), pages 3-28, January.
    13. Godwin Essang Esu,(PhD), 2023. "Fiscal Imbalances, Economic Growth and Macroeconomic Stability in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(8), pages 887-901, August.
    14. Samih Antoine Azar, 2012. "On the specification of the asset evolution equation in consumption models," Applied Economics Letters, Taylor & Francis Journals, vol. 19(2), pages 113-116, February.
    15. Pesenti, Amos, 2016. "The meaning of monetary stability," FSES Working Papers 475, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
    16. George Economides & Anastasios Xepapadeas, 2018. "Monetary Policy under Climate Change," CESifo Working Paper Series 7021, CESifo.
    17. Drobyshevsky Sergey & Bozhechkova Alexandra & Trunin Pavel & Sinelnikova-Muryleva Elena, 2017. "The Effect of Interest Rates on Economic Growth," Working Papers wpaper-2017-300, Gaidar Institute for Economic Policy, revised 2017.
    18. J.E. King, 2011. "Four Theses on the Global Financial Crisis," Chapters, in: Steven Kates (ed.), The Global Financial Crisis, chapter 7, Edward Elgar Publishing.
    19. Luis Eduardo Arango & Nataly Obando & Carlos Esteban Posada, 2011. "Los salarios reales a lo largo del ciclo económico en Colombia," Borradores de Economia 8950, Banco de la Republica.
    20. Olkhov, Victor, 2022. "Why Economic Theories and Policies Fail? Unnoticed Variables and Overlooked Economics," MPRA Paper 114187, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rnd:arjebs:v:12:y:2020:i:4:p:73-83. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Muhammad Tayyab (email available below). General contact details of provider: https://ojs.amhinternational.com/index.php/jebs .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.