Trade Openness and Economic Growth in Zimbabwe. Is Investment in Capital Goods Essential? (1985 To 2021)
- Author
- Grifeni, Samuel
- Title
- Trade Openness and Economic Growth in Zimbabwe. Is Investment in Capital Goods Essential? (1985 To 2021)
- Abstract
- The purpose of this study is to assess the impact of trade liberalisation on economic growth in Zimbabwe and how the interaction of trade openness and investment in capital goods contribute towards GDP Growth, using annual data collected between 1985 and 2021. While other theories suggest that international trade can be a problem to a country's revenue and technology transfer, the study aims to provide more insight into the impact of trade liberalisation on Zimbabwe's economy. The study uses the Ordinary Least Squares approach to analyse the data and determine the relationship between trade liberalisation and economic growth. The results of the study show a positive relationship between trade liberalisation and economic growth in Zimbabwe which indicates that open trade policies are useful towards economic growth. In addition, the results prove that the interaction of trade openness and investment in capital have positive relationship with economic growth. As a result, the study recommends that policy makers and government negotiators in Zimbabwe introduce measures that encourage exports through development of local production capabilities and fostering growth in efficiency and competitiveness. Additionally, the study suggests that fiscal policies aimed at boosting government expenditure could be put in place to promote economic growth in Zimbabwe. In summary, the study provides insights that could guide policy makers in Zimbabwe to adopt more effective measures to grow the country's economy.
- Date
- 2022
- Publisher
- BUSE
- Keywords
- Trade Openness
- Supervisor
- N/A
- Item sets
- Department of Economics
- Media
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Samuel Grifeni.pdf