The Impact of private investment on economic growth in Zimbabwe (1990-2020) · Electronic Theses and Dissertations

Author: Mujuru, Vongai
Title: The Impact of private investment on economic growth in Zimbabwe (1990-2020)
Abstract: With reference to the Zimbabwean economy and a data set spanning from 1990 to 2020, this study seeks to examine the inter-relationship between variables, namely private investment, and GDP growth, both in the long and short run. The long-term relationship between variables is defined using the Johansen and Juselious method (1990). The parameters short correction models are based on the findings of the long run cointegration tests. Public and private investment has a strong positive association with growth. There is evidence of a one-way causal relationship between real GDP and private income. The study was based on neoclassical growth models or exogenous growth models stated at land, labor, capital accumulation, and technology proved substantial for economic growth. The paper finds that private investment has a strong impact on economic growth. Gross capital formation, labor growth, and government final consumption expenditure were found significant in explaining the economic growth. Overall, private investment is substantial for economic growth and development in Zimbabwe.
Date: June 2022
Publisher: BUSE
Keywords: Private investment; Economic growth
Supervisor: Dr. Damiyano