The study investigated the relationship between trade openness and economic growth
for Namibia using annual time series data over the period 1980 to 2011. The variables
used include GDP per capita, labour force, capital formation, trade openness and real
exchange rate. This study employed time series techniques such as unit root, cointegration,
Granger-causality, impulse response function and forecast error variance
decomposition. The Johansen co-integration analysis and Vector Auto-regression
Model (VAR) are used in estimating the long run relationship between trade openness
and economic growth. There was co-integration of variables for trade openness and
economic growth. The results found a positive long run relationship between the
variables. The Granger-causality showed no causation from trade openness and
economic growth. The findings suggest that effective policies that promote labourintensive
industrial sectors would boost trade for economic growth in Namibia.
Therefore, promoting trade in various avenues can enhance economic growth in
Namibia.