ABSTRACT

This paper tests the causal relationship between financial development and economic growth in Namibia for the period 1980 to 2007. The analysis shows that there is evidence which points that financial development causes economic growth. It also shows that economic growth causes financial development. This suggests that Namibia should promote financial development or financial deepening as a strategy to enhance economic growth. At the same time, the country should also develop its real sector in order to promote economic development.