The impact of foreign direct investment on Namibia’s economic growth: A time series investigation

Figures & data

Table 1. Unit root tests results

Augmented Dickey-Fuller Test
Variable	Stationarity of all variables in Levels		Stationarity of all variables in First Differences		Decision
	Without Trend	With Trend	Without Trend	With Trend
ECONG	1.371630	−1.408941	−3.620435**	−5.2512***	I(1)
FDI	−3.67518***	−3.577582**			I(0)
KAP	−2.017070	−2.099107	−8.13523***	−8.1137***	I(1)
GOVC	−2.448638	−2.750500	−6.05747***	−6.0784***	I(1)
HCAP	−0.700840	−0.869874	−6.46182***	−7.5453***	I(1)
INF	−4.22688***	−5.00054***			I(0)
RETOI	−4.89291***	−5.24524***			I(0)
TOPEN	−2.466935	−2.350024	−3.85168***	−3.8622**	I(1)
Phillips Perron Test
ECONG	0.917973	−1.631682	−3.55679**	−6.8088***	I(1)
$FDI$	−3.68779***	−3.59601**			I(0)
KAP	−1.712647	−1.813532	−6.06796***	−6.0667***	I(1)
GOVC	−1.712647	−1.813532	−6.06796***	−6.0667***	I(1)
HCAP	−1.009050	−1.059729	−6.17784***	−10.064***	I(1)
INF	−4.18603***	−9.34558***			I(0)
RETOI	−4.90074***	−8.26303***			I(0)
TOPEN	−1.676843	−1.469992	−3.73139***	−4.5045***	I(1)

Note: *, **, and *** indicate significance at the 10%, 5%, and 1% levels, respectively.

Source: Author’s compilation

Table 2. The bounds test for cointegration

Dependent variable	Function					F-Statistic
LNECONG	LNECONG (LNFD, LNFDI_LNTOPEN, LNKAP, LNHCA, LNGOVC, LNRETOI, LNINFL)					5.9383***
Asymptotic Critical Values
Pesaran et al. (2001), Page 300, Table CI (iii) Case III	1%		5%		10%
	I(0)	I(1)	I(0)	I(1)	I(0)		I(1)
	4.29	5.61	3.23	4.35	2.72		3.77

Note: *, ** and *** signify statistical significance at 10%, 5% and 1% levels, respectively.

Source: Author’s compilation

Table

Variable	Coefficient	Std. Error
C	0.826476	0.851536
LNFDI	0.093815	0.026885
LNFDI_TOPEN	0.388801	0.024908
LNHCAP	0.261039	0.336428
LNKAP	0.296343	0.011832
LNGOVC	0.493259	0.061261
LNINFL	−0.169434	0.005428
LNRETOI	0.461294	0.002918
$\overline{R^2}$	0.770947
F-statistic	90.19710***
D-W statistic	0.710865

Source: Author’s compilation

Table 3. The ARDL-ECM with an interactive variable ΔFDI_TOPEN

Variable	Coefficient	Std. Error		t-Statistic	Prob.
$\mathrm{\Delta }LNECON{G}_{t-1}$	0.550430	0.076849		7.162469	0.0000***
$\mathrm{\Delta }LNFDI$	1.123504	0.421096		2.668045	0.0088***
$\mathrm{\Delta }LNFD{I}_{t-1}$	−0.894728	0.430301		−2.079308	0.0400**
$\mathrm{\Delta }LNFDI\mathrm{\_}TOPEN$	0.10013	0.03632		2.756883	0.0069***
$\mathrm{\Delta }LNFDI\mathrm{\_}TOPE{N}_{t-1}$	−0.07981	0.03724		−2.143126	0.0344**
$\mathrm{\Delta }LNKAP$	0.431056	0.223376		1.929732	0.0705*
$\mathrm{\Delta }HCAP$	0.023072	0.007742		2.979943	0.0084***
$\mathrm{\Delta }LNGOVC$	0.509232	0.284026		1.792903	0.0758*
$\mathrm{\Delta }LNRETOI$	0.309870	0.078384		3.953251	0.0001***
$\mathrm{\Delta }LNRETO{I}_{t-1}$	0.134898	0.082521		1.634714	0.1051
$\mathrm{\Delta }LNINFL$	−0.407681	0.097437		−4.184066	0.0001***
$EC{T}_{t-1}$	−0.307050	0.148438		−2.068541	0.0154**
$\overline{R^2}$		0.690189
F-statistic			26.27557***
D-W statistic			2.177724
${\chi }^2$ Serial			2.812526 (0.2451)
${\chi }^2$ARCH			2.509198 (0.1132)
${\chi }^2$Normality			0.27544 (0.84010)
${\chi }^2$ RESET			2.649963 (0.1065)

Note: ***, ** and * signify statistical significance at 1%, 5% and 10% levels, respectively.

Source: Author’s compilation

Figure 1. CUSUM and CUSUM of squares.

Source: Author’s compilation

Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616

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Data availability statement

The data used in the study is accessible through the following provided link: https://data.mendeley.com/datasets/j6d6j2bb6c/1.