Implications of unemployment to GDP growth in Zimbabwe. · Electronic Theses and Dissertations

Author: NYAMBIRIKIRA CLAYTON
Title: Implications of unemployment to GDP growth in Zimbabwe.
Abstract: This research investigates the relationship between unemployment and GDP growth in Zimbabwe, using World Bank data source from 1990 to 2022. It also takes a further step in looking at how other economic variables such as FDIs, exports and inflation impacted the GDP growth of Zimbabwe. Our analysis reveals a significant negative rates and GDP growth, indicating that high unemployment levels hinder economic growth. Specifically, we find that, a 1% increase in unemployment leads to 2.39% in GDP growth in Zimbabwe. Increase in exports have a positive contribution to GDP growth while increase in FDI and inflation have a negative effect on GDP growth in Zimbabwe based on the analysis results. These results highlight the need for policy makers to address unemployment through targeted interventions, such as labor market reforms, Education and training programs, and infrastructure development. For better economic activities to occur, inflation needs to be stable and low, FDI is argued to drive away domestic investment hence it leads to increased level of unemployment which has a negative effect to GDP growth in Zimbabwe. By tackling unemployment and inflation, Zimbabwe can unlock its economic growth potential, reduce poverty and inequality, and achieve sustainable development. This research provides valuable insights for policy makers, researchers and other stakeholders seeking to address the complex challenges surrounding unemployment and economic growth in Zimbabwe.
Date: JUNE 2024
Publisher: BUSE
Keywords: unemployment
Supervisor: DR DAVID DAMIYANO

Item sets: Department of Economics

Media: NYAMBIRIKIRA CLAYTON