South African Journal of Economic and Management Sciences
On-line version ISSN 1015-8812
Supply-side economics stresses the importance of analysing and modelling the long-term properties of an economy's production structures in order to investigate each factor of production's impact on final output. This helps to determine how much should be produced, how much is available for consumption and, eventually, how an economy can improve its long-term economic growth path. This study applied the neoclassical growth model to Namibia's growth over the period from 1971 to 2005 in order to identify and develop the main supply-side components of long-term economic growth in the country. Along with a production function, behavioural equations were estimated for the factors of production labour demand and capital investment, as well as for the links between prices and wages.
Keywords : Economic growth; neoclassical growth model; supply-side; cointegration; Cobb-Douglas production function.