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Research Article Open access CC BY 4.0

Factors Influencing Income Inequality in Namibia

M. Y. Teweldemedhin

Journal of Economics, Management and Trade · pp. 1–14 · Published 5 Oct 2015

10.9734/BJEMT/2015/19249

Abstract

This paper examines factors influencing income per person and inequality, applying hybrid Cobb-Douglas and Principal Component Analysis (PCA). The explanatory variables were found to be positively and significant, at one per cent. PCA found that three components “economic opportunity” with loading factor of 41.7%; followed by “educational and migration characterisation” percentage variation accounted for 17% and “household characterisation” accounted for a 14% variation explanation. The result shows that Namibia fail break the cyclical problem of poverty, unemployment and filling the required skills required for better economic growth.

Namibia income per person Cobb-Douglas and PCA

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