Effects Of Foreign Direct Investment On Economic Growth In Zimbabwe (2000 – 2023)
- Author
- CHITENGU CHIEDZA JAQUELINE
- Title
- Effects Of Foreign Direct Investment On Economic Growth In Zimbabwe (2000 – 2023)
- Abstract
-
The study looks at how Zimbabwe's economic growth was affected by foreign direct investment between 2000 and 2023. The significance of additional macroeconomic metrics on GDP, like trade tariffs, GDP growth prices, net inflows of foreign direct investment, consumer price inflation, and employment (to population ratio, overall, 15+) (based on ILO model estimates), was also examined in this study. The analysis uses a variety of econometric approaches, such as unit root tests, the generalized method of moments (GMM) approach, the
co-integration matrix, and ordinary least squares (OLS) regression, using time series data from the World Bank. While the Granger Causality test demonstrates the oriented correlation between foreign direct investment and GDP expansion, the co-integration analysis verifies the series is not co-integrated and, consequently, does not exhibit a long-term link. There is a significant positive correlation between the two variables, as shown by the correlation matrix. Additionally, the unit root level demonstrates that neither variable is statistically significant, whereas the unit root first difference indicates that both are. The GMM estimation supports the FDI-growth nexus finding. Overall, the analysis offers solid empirical support for the claim that rising FDI inflows have been a major factor in Zimbabwe's economic expansion across the examined all of it. The outcomes highlight the significance of policies meant to draw in and encourage FDI as a way to boost the nation's economy. - Date
- JUNE 2024
- Publisher
- BUSE
- Keywords
- foreign direct investment
- economic growth
- Supervisor
- DR. DAMIYANO
- Item sets
- Department of Economics
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