Abstract:
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.
