Record Details

The Relationship between Deposit and Lending Rates in Namibia

Asian Journal of Business and Management

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Field Value
 
Title The Relationship between Deposit and Lending Rates in Namibia
 
Creator Sheefeni, Johannes Peyavali Sheefeni
 
Subject Deposit interest rate
lending interest rate
linear
symmetric
imperfect competition
mark-up theory
error correction models
Namibia
 
Description This paper analyses the relationship between deposit interest rates and lending interest rates in Namibia. The objective is to test whether a linear and symmetric relationship holds for Namibia in the long run. Using monthly data for the period 1992:01 – 2012:12, the paper employed time series techniques, namely, unit root tests, and the cointegration test. The unit root test revealed that the series are non- stationary. The cointegration test showed that there is no cointegration among the variables. Hence, there is no long-run relationship between the deposit interest rate and the lending interest rate in Namibia. The study rejects the hypothesis of a linear and symmetric relationship in the Namibian context. In the absence of cointegration the study could not proceed with the Granger causality test. 
 
Publisher Asian Online Journals
 
Date 2013-10-14
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
 
Format application/pdf
 
Identifier https://ajouronline.com/index.php/AJBM/article/view/512
 
Source Asian Journal of Business and Management; Vol. 1 No. 4 (2013): October 2013
2321-2802
 
Language eng
 
Relation https://ajouronline.com/index.php/AJBM/article/view/512/246