Answer to Question #308454 in Economics of Enterprise for Albertina

Question

Does the gravity model predict or explain Namibian exports?

Instructions

 Discuss the above assignment question

 Length: not more than 5 pages

 Use 12 pt font size

 1.5 line spacing

 Your paper could have the following sections (just indicative)

o An introduction/background

o Namibia’s trade position – specific goods/services and trade partners

o Discussion

o Conclusion

Answer 1

The economy of Namibia is heavily trade oriented. Most of the marketable products are exported to South Africa, Europe, North America and East Asia. Food and manufactured goods are imported mainly from South Africa, with some supplies also carried out by other countries.

Exports: diamonds, copper, gold, zinc, lead, uranium, cattle, fish.

present data on exports in value change, %

Cumulative exports from Namibia amounted to $5.6 billion in 2020. The decrease in the supply of goods from Namibia in value terms amounted to 10.4% Compared to 2019: Export of goods decreased by $655 million (in 2019, goods worth $6.25 billion were delivered from Namibia).

Namibia: GDP per capita, purchasing power parity, 1990 - 2020: For this indicator, the World Bank provides data on Namibia for the period 1990 to 2020. The average for Namibia during this period was 8077.84 U.S. dollars with a minimum of 5945.97 U.S. dollars in 1990, and a maximum of 10662.83 U.S. dollars in 2015.

According to the graphs, it can be concluded that the Namibian economy is highly dependent on exports. In recent years, a negative trend has been observed.