Government Spending and Economic Growth in Zimbabwe from 1980 to 2014 · Electronic Theses and Dissertations

Author: Semende, Patronella
Title: Government Spending and Economic Growth in Zimbabwe from 1980 to 2014
Abstract: The study experimentally investigated the effects of various government spending components on economic growth in Zimbabwe from 1980 to 2014. Capital spending, social sector spending, and consumption spending made up the bulk of government spending. Other variables such as trade openness, foreign aid, labor force, and a dummy variable for drought were included in the empirical study. Estimations were made using time series data from the World Bank and ZIMSTAT. The Ordinary Least Squares (OLS) method was used in the investigation. The findings showed that consumption spending was growth-neutral while social sector spending was
found to be growth-retarding. Capital expenditures were found to be growth-stimulating. The findings also demonstrated the growth-decelerating effects of trade openness, labor force, drought, and foreign aid. By increasing investment, Zimbabwe's economy can grow faster.
Date: 2022
Publisher: BUSE
Keywords: Government Spending
Supervisor: N/A