The Impact of foreign direct investments on economic growth and development in Zimbabwe (1980-2020) · Electronic Theses and Dissertations

Author: Muswati, Tafadzwa
Title: The Impact of foreign direct investments on economic growth and development in Zimbabwe (1980-2020)
Abstract: The goal of the study is to look at the impact of foreign direct investment on economic Zimbabwe’s growth from 1980 to 2020.Theoretical postulates claim that FDI has a favourable impact on economic growth, while empirical evidence is mixed. While some studies show that FDI benefits both host and home countries although there are some disadvantages to both host and home nations. The study examines the effect of FDI on economic growth in Zimbabwe using data from 1980 to 2020 and applies the ordinary least squares (OLS) techniques on time series data using E-views 7 statistical package software. FDI, Gvt expenditure and employment are all subjected to the OLS, with economic growth (GDP) as the dependent variable. All variables have large positive impact on economic growth according to the results of the study. Findings of the study reveals that FDI important in fostering Zimbabwe’s economic growth trajectory. As a result, good policies that lure foreign investors or companies are needed to be implemented so as to create a conducive business environment which will improve opportunities which will lead to economic growth of a nation.
Date: June 2022
Publisher: BUSE
Keywords: Foreign direct investment; Economic growth and development
Supervisor: Dr. Damiyano