Author

  • Emmanuel Ziramba

    • Department of Economics, University of Namibia, Pionierspark, Windhoek, Namibia
    • Namibia

  • Bernie Zaaruka

    • Department of Economics, University of Namibia, Pionierspark, Windhoek, Namibia
    • Namibia

  • Johanna Mumangeni

    • Department of Economics, University of Namibia, Pionierspark, Windhoek, Namibia
    • Namibia

  • Charlotte Tjeriko

    • Department of Economics, University of Namibia, Pionierspark, Windhoek, Namibia
    • Namibia

  • Jaungura Kaune

    • Department of Economics, University of Namibia, Pionierspark, Windhoek, Namibia
    • Namibia

Abstract

The study analysed the behaviour of potential output and output gap for the Namibian economy using annual data from 1980 to 2016. The study employed the Hodrick-Prescott (HP) filter method and the production function approaches to estimate potential output before calculating the output gap. The results suggest an annual average growth rate of 3.6 percent in potential output. However, it has been noted that the average annual growth rate in potential output has been shifting during the period under review. In fact, the results suggest an annual average growth rate of 1.6 percent between 1980 and 1985 and an increase to 2.5 percent per year for the period 1986 to 1990. Potential output estimates obtained using the production function approach was smooth and stable throughout the study period. The potential output estimates obtained through the two methods follow the same cyclical movements. The output gap estimates from the two techniques are not different from each other, and they appear to move together.

Keywords

References

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How to Cite

Ziramba, E., Zaaruka, B., Mumangeni, J., Tjeriko, C., & Jaungura Kaune. (2019). The Output Gap and Potential Output in Namibia. Journal of Economics and Behavioral Studies, 11(5(J), 69-75. https://doi.org/10.22610/jebs.v11i5(J).2967

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Copyright (c) 2019 Emmanuel Ziramba, Bernie Zaaruka, Johanna Mumangeni, Charlotte Tjeriko, Jaungura Kaune (Author)

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Research Paper

Published in

Vol. 11 No. 5(J) (2019) Behavioural Economics, Growth & Structural Change View issue contents

Published

2019-12-09

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