It is the purpose of this paper to unravel the oscillations and vacillations of foreign direct investment, debt, unemployment to economic growth nexus. The nexus of good governance, unemployment, economic growth and FDI is essential. Good economic governance shows a positive effect on growth, attracts FDI, reduces unemployment and attracts economic growth.
Bad economic governance is inclined to reduce economic growth, increases unemployment, reduces FDI, cause people to languish in debts and delays people in the investment process. A positive sign of corruption indicates that the higher the corruption, the lower the inward FDI. The researcher disagrees that corruption is suitable for foreign investors. The pendulum is tilted where investors prefer not to invest in countries with high corruption where there is a lack of enforcement laws.
Further, foreign investors have created an ecosystem where local small businesses cannot compete. More worrying is the state's credit rating that has seen a consistent downgrade by major credit rating agencies, which now stands at sub-investment grade, or what is referred to as "junk status". The main reasons quoted for this declivity was going to the dogs of Namibia's financial robustness due to massive fiscal lopsidedness, an astronomic debt excess baggage and limited enterprise capacity to manage shocks and address long-term structural pecuniary rigidities.
There has been a rift between the youth haves and have-nots in term of job allocation. The total household debt in Namibia is made up mostly of mortgages, car loans, student loans and credit card debt. The car loans, mortgages, credit cards and student loans make up most of 95% of Namibia household debt.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Conundrum
- Literature Review
- FDI Theories
- Knowledge Capital Model
- Hymer FDI Theory
- Eclectic Paradigm Theory
- The Vacillations and Oscillations FDI, Unemployment, Debt- Economic Growth Nexus
- Taxonomies of FDI
- FDI in Natural Resources
- FDI in Infrastructure
- FDI in Non-extractive and Non-infrastructure Sectors
- Vacillations and Oscillations on the determinants of Household Indebtedness in Namibia
- Changes in household income
- Changes in interest rates
- The household house prices
- Housing equity withdrawal
- Excessive consumption
- Unemployment
- Main causes of unemployment
- Types of unemployment
- Namibia's High government expenditure through bloated departments
- Namibia's High government debt
- Vacillations advocating State Borrowing
- Vacillations Against State Borrowing
- The effect of unemployment on individuals, households and business
- Economic growth and sovereign debt
- Vacillations and Oscillation of the GDP growth rate in Namibia
- Results
- Chinese is the highest FDI in Africa
- Net Direct Investments in Namibia
- Portfolio Investments
- Granger Causality
- Policy Recommendations
- References
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to explore the complex interrelationships between foreign direct investment, debt, unemployment, and economic growth in Namibia, examining their fluctuations and oscillations. The author highlights the crucial role of good governance in attracting foreign investment, promoting economic growth, and reducing unemployment. The paper also investigates the impact of high levels of debt and corruption on Namibia's economy.
- The interconnection between foreign direct investment, debt, unemployment, and economic growth in Namibia.
- The significance of good governance in attracting foreign investment, promoting economic growth, and reducing unemployment.
- The effects of high levels of debt and corruption on Namibia's economic performance.
- The impact of unemployment on individuals, households, and businesses in Namibia.
- The role of government policies and interventions in addressing unemployment and debt levels in Namibia.
Zusammenfassung der Kapitel (Chapter Summaries)
The introductory chapter establishes the context of the research, focusing on Namibia's post-independence efforts to attract foreign investment and stimulate economic growth. It discusses the role of foreign direct investment in promoting long-term economic development and highlights the importance of good governance. The chapter also emphasizes the negative impact of corruption and high debt levels on foreign investment and economic growth. Chapter 2 delves into a review of relevant literature, exploring various FDI theories and examining the existing research on the relationship between FDI, unemployment, debt, and economic growth. It also investigates the determinants of household indebtedness in Namibia. The chapter concludes by examining the challenges posed by high government expenditure and debt levels, particularly in light of Namibia's "junk status" credit rating. Chapter 3 provides a comprehensive overview of unemployment in Namibia, examining its main causes and types. The chapter discusses the impact of unemployment on individuals, households, and businesses, emphasizing the need for government intervention to address the issue. The chapter also analyzes the relationship between economic growth and sovereign debt, highlighting the challenges of managing Namibia's high debt burden. The chapter concludes by examining the vacillations and oscillations of the GDP growth rate in Namibia. Chapter 4 presents the results of the study, focusing on the high levels of Chinese FDI in Africa and examining the trends in net direct investments in Namibia. Finally, Chapter 5 explores portfolio investments in Namibia and discusses policy recommendations for addressing the challenges of unemployment, debt, and foreign investment. The paper concludes with a discussion of the key findings and recommendations for future research.
Schlüsselwörter (Keywords)
The key terms and focus topics of the text include foreign direct investment, debt, unemployment, economic growth, governance, corruption, household indebtedness, government expenditure, sovereign debt, GDP growth, and policy recommendations. The work explores the dynamic relationships between these factors, particularly in the context of Namibia's economic development. The research highlights the need for effective policies and interventions to promote sustainable growth and reduce unemployment in the country.
- Quote paper
- David Mpunwa (Author), 2020, The Vacillations and Oscillations of Foreign Direct Investment, Debt, Unemployment and Economic Growth Nexus in Namibia, Munich, GRIN Verlag, https://www.grin.com/document/536769
