Abstract
Using annual time series data running from 1990 to
2023, this study focused on the Impact of Absorptive Capacity on Economic
Growth in Namibia using an Autoregressive Distributed Lag (ARDL)-Error
Correction Model Framework (ARDL-ECM) and Granger causality approaches. The
results indicated a long-run and short-run relationship between absorptive
capacity and economic growth. However, the study finds no significant causal
relationship between absorptive capacity and economic growth in Namibia.
Policymakers in Namibia should focus on enhancing the country’s absorptive
capacity. It is also advisable that the policy makers focus on other
macroeconomic variables for them to promote economic growth instead of
absorption capacity.
