Economic Growth In Zimbabwe Research Articles

Human Capital Development and Economic Growth Nexus in Zimbabwe

This study empirically examined the relationship between human capital development and economic growth in Zimbabwe for the period 1980 to 2015, using time series analysis techniques of co-integration, error correction model, and Granger causality tests. The study was motivated by changes which have characterised the financing of human capital since the country attained independence. A decade after independence, the government was able to adequately finance the social sectors; however, thereafter government financing has been declining since the adoption of the structural adjustment programme. The findings of this study indicate the existence of a short-run and long-run relationship between human capital development and economic growth in Zimbabwe. On the direction and significance of the relationship, the result is mixed. Human capital development, proxied by government expenditure on health, had a significant positive impact on economic growth—both in the short run and the long run—reaffirming that a healthy labour force will be more productive and efficient. Human capital development, proxied by government expenditure on education, was found to negatively impact economic growth in the long run. In conclusion, a positive relationship between human capital development and economic growth in Zimbabwe was found, although the relationship is weak.

Agriculture Expenditure and Economic Growth in Zimbabwe During The Pre-Economic Meltdown Period: Cointegration and Error Correction Models

Agriculture Expenditure and Economic Growth in Zimbabwe During The Pre-Economic Meltdown Period: Cointegration and Error Correction Models

Government expenditure and economic growth in Zimbabwe

Government expenditure and economic growth in Zimbabwe

African Traditional Art Forms, Democratic Governance and Economic Growth in Zimbabwe

The article seeks to explore the role of African oral traditional art forms and governance in Zimbabwe for economic development. African philosophies, embedded in oral literature were part and parcel of the people’s life. Everybody participated in the activities that affected them in society. Thus African peoples used oral literature, which is dependent on the performer who formulates it on a specific occasion—this forms part of issues of governance. Some problems, which people, and Zimbabweans in particular are facing, emanate from colonialism, and have led them to believe that they had no culture or anything to shape their way of thinking. These problems have always been there, and people had a way of circumventing them through the philosophies that were embedded in their oral art forms. It is against this backdrop that the researcher seeks to explore the place of oral art forms; which include proverbs, riddles, folktales among others; and governance as vehicles to drive economic growth in Zimbabwe. The article is based on a conceptual method of study, where examples of oral art forms used have been taken from various speech communities in Africa. The researcher’s arguments are guided by the Afrocentricapproach and the discussion establishes that issues of democracy and governance were part and parcel of indigenous people’s way of doing things, in a bid to achieve economic growth in their societies.

Mineral commodity prices and economic growth: a case of Zimbabwe

The study investigated the relationship between mineral commodity prices and economic growth in Zimbabwe using autoregressive distributive lag (ARDL) framework. Theoretical literature says that the impact of commodity prices on economic growth depends on whether a country is a net commodity exporter or importer. Subsequent empirical studies showed quite conflicting and divergent views on the relationship between mineral commodity prices and economic growth. Moreover, prior research works on mineral prices-economic growth nexus have eluded Africa and Zimbabwe in particular. The F-bounds test found out that only the relationship between copper prices and economic growth were co-integrated. The findings of the causality test are twofold: changes in copper prices only affected Zimbabwe's economic growth in the long run whereas economic growth in Zimbabwe only influenced copper prices in the short run. The implication is that Zimbabwean authorities should invest more towards copper extraction in order to economically benefit from increase in copper prices.

An Econometric Assessment of the Impact of Inflation on Economic Growth: A Case Study of Zimbabwe Economy

This study sought to determine the impact of inflation on Economic growth in Zimbabwe. The time series yearly data for Inflation and Economic Growth (GDP) from 1990 to 2017 were used for the study. Ordinary Least Squares (OLS) was used to determine the impact of inflation on Economic growth. Some Stationarity and Cointegration tests were carried out. Data became stationarity after first and second differencing using Augmented Dickey Fuller Test. There was also evidence of cointegration between the two variables using the Johansen Cointegration Test. The results of the study established no relationship between Inflation and Gross Domestic Product in Zimbabwe. These results have important policy implications, implying that controlling inflation is a necessary but not a pre-condition for promoting economic growth in Zimbabwe. Thus, the Zimbabwean government should focus on maintaining inflation at a low rate (single digit). In this regard the study concluded that all factors which cause an increase in the general price levels such as energy (petrol, diesel, gasoline, paraffin), exchange rates volatility, increase in money supply, poor agricultural production and so forth, should be kept on check, with the appropriate policies so as to foster economic growth.

Mineral commodity prices and economic growth: a case of Zimbabwe

The study investigated the relationship between mineral commodity prices and economic growth in Zimbabwe using autoregressive distributive lag (ARDL) framework. Theoretical literature says that the impact of commodity prices on economic growth depends on whether a country is a net commodity exporter or importer. Subsequent empirical studies showed quite conflicting and divergent views on the relationship between mineral commodity prices and economic growth. Moreover, prior research works on mineral prices-economic growth nexus have eluded Africa and Zimbabwe in particular. The F-bounds test found out that only the relationship between copper prices and economic growth were co-integrated. The findings of the causality test are twofold: changes in copper prices only affected Zimbabwe's economic growth in the long run whereas economic growth in Zimbabwe only influenced copper prices in the short run. The implication is that Zimbabwean authorities should invest more towards copper extraction in order to economically benefit from increase in copper prices.

Carbon emissions, energy consumption and economic growth in Zimbabwe: investigating the existence of the environmental Kuznets curve within a developing economy context

This article examines the short- and long-run association among carbon emissions, energy consumption and economic growth through deploying the environmental Kuznets curve (EKC) using combined (aggregated) and separated (disaggregated) energy consumption data for Zimbabwe from 1980 to 2014. The ARDL bounds tests and Johansen cointegration tests found long-run relationships among the variables. In the long-run, total energy consumption and primary coal consumption produce statistically significant positive relationships with carbon emissions. However, petroleum consumption demonstrates a statistically significant negative association with carbon emissions. The results show the validity of the EKC in total energy and primary coal consumption in the long-run but are invalid for petroleum consumption. In the short run, the findings reveal that total energy, primary coal and petroleum consumption have statistically significant positive relationships with carbon emissions. Furthermore, in the short run, the EKC is evident in petroleum consumption but invalid in both total energy and primary coal consumption. The short- and long-run Granger causality tests results based on the VECM are also discussed. The article concludes that, if carbon emissions are to be reduced in developing economies, alternative energy sources in the form of green technologies should be adopted as substitutes for coal and petroleum.

Carbon emissions, energy consumption and economic growth in Zimbabwe: investigating the existence of the environmental Kuznets curve within a developing economy context

This article examines the short- and long-run association among carbon emissions, energy consumption and economic growth through deploying the environmental Kuznets curve (EKC) using combined (aggregated) and separated (disaggregated) energy consumption data for Zimbabwe from 1980 to 2014. The ARDL bounds tests and Johansen cointegration tests found long-run relationships among the variables. In the long-run, total energy consumption and primary coal consumption produce statistically significant positive relationships with carbon emissions. However, petroleum consumption demonstrates a statistically significant negative association with carbon emissions. The results show the validity of the EKC in total energy and primary coal consumption in the long-run but are invalid for petroleum consumption. In the short run, the findings reveal that total energy, primary coal and petroleum consumption have statistically significant positive relationships with carbon emissions. Furthermore, in the short run, the EKC is evident in petroleum consumption but invalid in both total energy and primary coal consumption. The short- and long-run Granger causality tests results based on the VECM are also discussed. The article concludes that, if carbon emissions are to be reduced in developing economies, alternative energy sources in the form of green technologies should be adopted as substitutes for coal and petroleum.

The strong influence of sound corporate governance on economic Growth: evidence from Zimbabwe

The study examined the impact of sound corporate governance on economic growth in Zimbabwe using an econometric model. A multiple linear regression analysis was employed to examine the relationship. Secondary data for the period 1968 to 2015 was collected from World Bank’s Worldwide Governance and World Development Indicators databases. It was found that sound corporate governance is significantly correlated to economic growth in Zimbabwe in a positive and negative manner with a p-value of 0.000023235 at 5% level of confidence. On one hand, control of corruption is negatively significantly related to economic growth and, on the other hand, political stability and absence of violence/terrorism positively significantly related to economic growth. Government effectiveness, regulatory quality, rule of law and voice and accountability are insignificant in influencing economic growth in Zimbabwe at 5% level of significance. The findings from this article will assist policy formulation, policy implementation and future research. This article, however, is of great importance to government, private sector and the academia.

The Impact of Financial Development on Economic Growth in Zimbabwe: Comparative Analysis of Stock Markets and Commercial Banks

The purpose of this paper is to examine the relationship between financial development—bank and stock market—and economic growth in Zimbabwe. Using data during the period from 2005 to 2013, the study employed a VECM for the short run Controls variables. This offers a possibility of applying VAR in order to use integrated multivariate time series and avoid spurious regression as the interest rates appear to have long run positive impact on economic growth. This means that banking sector performs better than the stock markets if the interest rate is positively related to economic growth. The findings suggest a positive relationship between efficient stock market and economic growth both in short run and long run. Interest rates have a negative effect, while market capitalisation has a positive effect on growth. It is concluded that financial sector is important in the process of sustainable economic development in Zimbabwe.

Public and private investment and economic growth in Zimbabwe: An empirical test

This study performs an examination on the impact of public and private investment on economic growth and the crowding effect of public investment on private investment in Zimbabwe from 1970 to 2014. The study utilised the newly developed autoregressive distributed lag-bounds testing approach with better small sample properties than the traditional cointegration techniques. The results show that public investment has a higher short-run growth impact, but in the long run the private investment-led growth is more important. In addition, while gross public investment crowds out private investment, infrastructural public investment has a long-run crowding in effect. A non-infrastructural public investment was also reported to have a short-run crowding out effect on private investment. The results suggest that the productivity of public and private investment in Zimbabwe can be improved by cutting back on non-infrastructural public investment to basic minimum level while stimulating the growth in infrastructural public investment.

Financial innovation and economic growth: evidence from Zimbabwe

The role of financial innovation on economic growth in developing countries has not been actively pursued. Stemming from the finance-growth nexus, literature suggests that financial innovation has a relationship to growth, which could be either positive or negative. Implicitly, financial innovation has a good and a dark side that affects growth. This study establishes the causal relationship between financial innovation and economic growth in Zimbabwe empirically. Using the Autoregressive Distributed Lag (ARDL) bounds tests and Granger causality tests on financial time series data of Zimbabwe for the period 1980-2013, the study finds that financial innovation has a relationship to economic growth that varies depending on the variable used to measure financial innovation. A long-run, growth-driven financial innovationis confirmed, with causality running from economic growth to financial innovation. Bi-directional causality also exists after conditionally netting-off financial development. Policies that enhance economic growth inter-twined with financial innovation are essential, if developing countries, such as Zimbabwe, aim to maximize economic development

Can technology provide a glimmer of hope for economic growth in the midst of chaos? A case of Zimbabwe

In this paper we examine the effect of technology on economic growth in Zimbabwe over the period 1975–2014 whilst accounting for structural breaks. We use the extended Cobb–Douglas type Solow (Q J Econ 70(1):65–94, 1956) framework and the ARDL bounds procedure to examine cointegration and short run and long run effects. Using unit root tests, we note that structural changes in Zimbabwe are generally marked by the period 1982 onwards. We find that mobile technology has a positive short-run (0.09 %) and long-run (0.08 %) impact on the output per capita. The structural changes post-1982 periods show positive impact in the short-run (0.06) and the long-run (0.09), whereas the coefficient of trend in the short-run (−0.03) and the long-run (−0.04) is negative. The Granger non-causality test shows a unidirectional causality from capital stock (investment) per capita to output per capita and a bi-directional causality between mobile cellular technology and output per capita. The plausible reasons for estimated magnitude effects and the direction of causality are explained for policy deliberation.

An Empirical Analysis of the Impact of Unemployment on Economic Growth in Zimbabwe

This study examined the impact of unemployment on economic growth in Zimbabwe for the period 1982 to 2013. In this study we use the ordinary least squares (OLS) to estimate the regression equation. The first step is to make the data stationary to avoid spurious regression. Based on the stationarity test results, cointegration tests were conducted to test for the existence of a long run relationship between economic growth and its determinants. The Error Correction Model (ECM) was also employed to establish the short run dynamics and speed of adjustment to the long run. The estimation results for both the long run and short run models revealed that unemployment has a significant influence on productivity growth. Also shown from the results is the negative relationship between unemployment and economic growth.

An Analysis of the Impact of Investment on Economic Growth in Zimbabwe

The study seeks to find out the impact of investment on economic growth from 1980 to 2013. The model used is a linear function. It has been discovered that investment positively affect economic growth in Zimbabwe. It is recommended that the investment authorities should check and monitor the magnitude of the contribution made by investment in Zimbabwe to adequately provide investment incentives to those with the resources to do so.

Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013

This study analysed the interconnectedness between economic growth and imports in the short and long run in Zimbabwe from 1975 to 2013. The Zimbabwean economy generally experienced positively associated trend between Gross Domestic Product and imports over the years. For precise and effective policy formulation, it is therefore necessary to understand the nexus between the two mentioned macroeconomic variables. Based on the results of the Johansen causality method, there is a short run unidirectional link between Gross Domestic Product and imports, running from imports to Gross Domestic Product. In the long run no evidence exists for the connection between the two variables according to the Johansen co-integration tests.

Applicability of Keynesian Ideology in the Zimbabwe's Economic Growth Path

Economic development disparities are caused mainly by unjustified biased policies and not in actual fact biased policies. Balanced policies are often recommended for balanced growth of all economic sectors. However, through sector linkages, and due to lack of funding in many developing nations, ranking of sectors according to strength and speed of transmission is essential. This paper seeks to express the suitability of the Keynesian ideology to boost economic growth in Zimbabwe. The paper criticize current economic policies that are biased on the supply side of the economy. The study indicates that the purchasing power of the citizens is very low and hence they opt for cheap imports. The manufacturing sector’s cost of production is a bit higher as compared to more stable neighbouring firms (imports). The continued increase in import tariffs and banning of products will not help in the face of lowly paid citizens and an economy with high unemployment. The study concludes by encouraging the relevant authorities to boost the demand side of the economy so that the supply side will respond considerably, which will take the economy to a better level of development.

Strategy Implementation Framework Used by SMEs in Zimbabwe

The field of strategic management has been expanding to embrace new concepts and models with a view to better understanding the field. One area of strategic management which is gaining currency is strategy implementation. Many a scholar and practitioner is exploring ways in which strategy implementation can be enhanced for organisations to function effectively. Several approaches have been proffered including the development of implementation models and frameworks. This study seeks to enhance strategy implementation knowledge among SMEs in Zimbabwe by developing a new framework that seeks to shed light on how the SMEs implement strategy. The development of the framework seeks to explain why, despite government policies to support economic growth, SMEs in Zimbabwe have failed to drive economic growth yet evidence from literature has indicated the significant role played by SMEs in growing economies in other countries. In depth interviews were used to gather the data from multiple case studies. The major finding of this study was that the framework used by SMEs in Zimbabwe emphasized both self and family survival. There appears to be a significant focus on inward behaviour that focuses on relationships and family anchored business survival. This could be the underlying reasons for the somewhat underperformance of SMEs in delivering strong economic growth in Zimbabwe despite a plethora of state driven assistance programmes. There is therefore need to test the applicability of this model in a longitudinal study and make adaptations to make the current framework have a more business focussed approach.

Labor and Economic Growth in Zimbabwe

The study investigates the impact of labour on economic growth in Zimbabwe. The research uses a simple Ordinary Least Squares regression modeling method. The results suggest that labour and capital impact positively on Zimbabwe’s economic growth. The study recommends the government to pursue an employment-intensive strategy. It also recommends the government to develop an education and training system geared towards employment creation.