Impact of manufacturing sector on Economic growth in Zimbabwe. · Electronic Theses and Dissertations

Author: Mukonyora, Allan
Title: Impact of manufacturing sector on Economic growth in Zimbabwe.
Abstract: The aim of the study is to analyse the empirical relationship between the Manufacturing sector and Economic Growth in Zimbabwe for the period 1980 to 2013 using time series data based on Kaldor's laws. The research analyses the impact of manufacturing output growth, export growth, capacity utilisation growth and mining output growth on economic growth .In order to get robust results, the research employed OLS regression technique to testify the relationship between Manufacturing sector and economic growth, using GDP as a proxy of measuring economic growth. Stationarity of variables was tested using the ADF unit root test to remove spurious relations .The results show that the output of the manufacturing sector contributes positively to economic growth. Looking at other variables, export growth and capacity utilisation growth have are significant in explaining GDP growth in Zimbabwe while mining output growth proved to be insignificant in explaining growth of the economy. The study tirades that manufacturing sector should be encouraged through tax holiday and tax reliefs to boost the output from this sector.
Date: April 2022
Publisher: BUSE
Keywords: Manufacturing output growth, Mining output growth, Export growth, Capacity utilisation growth, Kaldor's lawand GDP.
Supervisor: Mr Damiyano