An Analysis of Determinants of Private Investment in Zimbabwe for the Period 2009- 2011

Bayai, Innocent (2013) An Analysis of Determinants of Private Investment in Zimbabwe for the Period 2009- 2011.

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Official URL: http://ir.nust.ac.zw/xmlui/handle/123456789/434

Abstract

An analysis of Determinations of Private Investment in Zimbabwe for the period 2009-2011 is a published article of the Finance Department.,The study set out to analyse the determinants of private investment post the introduction of the multi-currency system in Zimbabwe (2009-2011). This was prompted by the sluggish growth in private investment thereby crippling the economy?s growth on the large. Variables identified for the study include political risk, GDP, national savings, inflation, interest rates, public investment, trade terms and debt servicing. To enhance the analysis, the study assumed correlation analysis and multiple regression in an effort to examine how private investment related to each identified variable as well as the net effect of each variable on private investment. Though most results from correlation analysis are contrary to the research?s expectations, treating the variables for co and multicollinearity gave theory aligned results in regression analysis. The study, though not out rightly disregarding correlation results identifies political risk, interest rate, GDP, debt servicing and trade terms as key determinants of private investment over the study period. Key though is the realisation that, statistical significance of results is independent of the practicality of economic principles. In a bid to foster economic growth and increase private investment, the study recommends the promotion of political stability, the attraction of FDI, enabling a structured public-private dialogue and promoting Government investment in infrastructure development among others.

Item Type: Article
Uncontrolled Keywords: Private Investment and Economic Growth
Divisions: Universities > State Universities > National University of Science and Technology
Depositing User: Mr. Edmore Sibanda
Date Deposited: 01 Dec 2015 00:01
Last Modified: 01 Dec 2015 00:01
URI: http://researchdatabase.ac.zw/id/eprint/1177

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