Economic recovery and currency reforms impact assessment for economic stability and growth in Zimbabwe

Author

Matanga, Tafadzwa J.

Title

Economic recovery and currency reforms impact assessment for economic stability and growth in Zimbabwe

Abstract

The research study entitled, “Economic recovery and currency reforms impact assessment for economic stability and growth in Zimbabwe” which aimed at assessing the extent to which economic recovery and currency reforms impacts the economic stability and growth in Zimbabwe over a period of 5 years. This was achieved by; firstly, identifying the currency reforms and economic recovery methods implemented in Zimbabwe over the period of 10 years; assessing the impacts of economic recovery strategies and currency reforms towards inflation, poverty reductions as well as standards of living; evaluating the impact of currency reforms on currency exchange rate stability and business investments in Zimbabwe and lastly, recommended solutions aiming at improving and revising the economic recovery and currency reforms for economic stability and growth. The specific objectives necessitated the data collection using a quantitative research approach, where questionnaires were distributed to relevant economic sectors and departments. A sample population of 70 participants was assessed and the research recorded an overall response rate of 82.9%. Data was presented, analysed, and discussed appropriately leading to the conclusions and suggestions through the use of descriptive statistics provided using the Statistical Package for Social Sciences (SPSS) software with an emphasis on the mean score ranks, and frequency tables amongst other tools. The research tested the inter – reliability testing for the 36 variables of the questionnaire and a Cronbach’s alpha coefficient of 0.942 was observed resulting in the coefficient being accepted. The research framework was built through the following theories; Structure-Conduct-Performance Model, Efficiency Structure Hypothesis (ESH) and Harrod Domar model – Savings Ratio and Investment. The major findings were; Short-Term Emergency Recovery Policy (STERP) and Fiscal Policy (FP) for strategies for economic recovery and Reintroduction of the Zimbabwean Dollar and Currency Board Regime for the Currency Reforms. The effects and impacts towards inflation, currency exchange rate stability and business investments; poverty reductions as well as standards of living were discussed accordingly. The major recommendations were that there should be collaboration with the business sector and development partners are required, avoiding a learning crisis that might threaten long-term growth and productivity and leveraging private financing where possible to stimulate growth.

Date

March 2023

Publisher

BUSE

Keywords

Currency reforms,

Economic recovery strategies,

Efficiency Structure Hypothesis,

Supervisor

N/A