Page 10 - UNAM Virtual Graduation e-Book (April2021)

FACULTY OF ECONOMIC &
MANAGEMENT SCIENCES

DOCTOR OF PHILOSOPHY IN ECONOMICS

CANDIDATE: KALUMBU Sakaria A

CURRICULUM VITAE

Sakaria Angula Kalumbu was born in Oshana region, in the northern part of
Namibia. He matriculated from Ekulo Senior Secondary School in the Oshikoto
region. He holds an Honors degree in Economics from the University of
Namibia. He also holds a Master’s degree in Economics from the University of
Namibia in collaboration with the African Research Consortium in Nairobi, Kenya. Kalumbu is currently a Lecturer
at the University of Namibia in the Department of Economics, Main Campus. His research interest focuses on
macroeconomic related issues.

CANDIDATE’S DISSERTATION
DYNAMIC INTERACTION BETWEEN MACROECONOMIC INDICATORS AND ASSET MARKETS IN NAMIBIA

The doctoral study was undertaken and completed under the supervision of Prof. Johannes P. S. Sheefeni
(University of Western Cape) as the Main-Supervisor and Dr. J. A. de Beer (University of Namibia) as Co-Supervisor.

The researcher examined the dynamic interaction between macroeconomic indicators and the asset markets
in Namibia between 1995 and 2018. The study is comprised of three empirical essays. The first essay analysed the
relationship between the stock market and the macroeconomic indicators in Namibia. The stock market was
tested for volatility using the ARCH/GARCH models, whilst the ARDL model, together with the ECM model, was
used to assess the nature of the relationship between the stock market and the macroeconomic indicators in
Namibia.
The results showed that the Namibian stock market was not volatile. The results also confirmed a short and
long-run relationship between the Namibian stock market and the macroeconomic indicators, seen especially
through real exchange rates. Furthermore, a unidirectional causal relationship between the stock market
and the macroeconomic indicators was revealed. The second empirical essay investigated the relationship
between the foreign exchange market and the macroeconomic indicators in Namibia. The ARCH/GARCH
models revealed the presence of volatility, whereas the TGARCH and EGARCH models revealed the leverage or
volatility that explains the asymmetries in the foreign exchange market. The ECM test indicated that the volatility
in the Namibian foreign exchange market can be explained by the macroeconomic indicators in Namibia.
Additionally, the ECM test indicated that there is a relationship between the foreign exchange market and the
macroeconomic indicators. The third empirical essay looked at the relationship between the housing market
and the macroeconomic indicators in Namibia.
The SVAR model confirmed the relationship between the housing market and macroeconomic indicators in
Namibia. Furthermore, the results showed that the housing market responded to shocks in the macroeconomic
indicators in Namibia. Similarly, although the housing market explained most of its own innovations, the
macroeconomic indicators contributed to the fluctuations in the housing market as well. The Granger Causality
test revealed a unidirectional causal relationship between the housing market and the macroeconomic
indicators in Namibia. Monetary policy expansion was recommended to promote macroeconomic objectives
through the Namibian stock market and the Namibian foreign exchange. Fiscal policy will be appropriate in
dealing with the volatilities in the foreign exchange market. Monetary policy was recommended to promote the
housing market through credit availability.

10