Analyzing the Competitiveness of Zimbabwean Economy against its Neighbouring Countries
Journal Title: Empirical Economic Review - Year 2018, Vol 1, Issue 1
Abstract
The purpose of this research is to analyze the impact on economic performance of competitiveness of Zimbabwean economy vis-à-vis its neighbouring countries, namely Botswana, Mozambique, South Africa and Zambia between 2006 and 2015. In this study a panel data model based on random effects model is applied. Results confirm that investment, human capital and overall competitiveness are positive and statistically significant while inflation is negative and insignificant in influencing the economic growth. A 1% increase in investment, human capital and improvement in competitiveness has an expected effect of increasing economic growth by 0.31%, 1.14% and 5.52% respectively. Results further unravel that country’s individual competitiveness contributes to economic performance. However, relative to Zimbabwe, there is overwhelming evidence that South Africa, Botswana and Zambia have higher contributions while that of Mozambique is insignificant. Specifically, a competitiveness index of 3 for South Africa, Botswana and Zambia contributes to economic performance by 3.54%, 3.44% and 2.93% respectively higher than that Zimbabwe could achieve using the same score. In light of the above, it is imperative for Zimbabwe to strive towards improving the performance of nine pillars of competitiveness that exhibit some weaknesses so that higher economic growth can be attained. Besides addressing competitiveness challenges, countries in the sample need to boost investment as well as improving human capital in order to stimulate economic performance.
Authors and Affiliations
Puruweti Siyakiya
Keywords
Related Articles
- EP ID EP402557
- DOI 10.29145/eer/11/010101
- Views 139
- Downloads 0
Analyzing the Competitiveness of Zimbabwean Economy against its Neighbouring Countries
The purpose of this research is to analyze the impact on economic performance of competitiveness of Zimbabwean economy vis-à-vis its neighbouring countries, namely Botswana, Mozambique, South Africa and Zambia between 20...
Forecasting GDP Growth: Application of Autoregressive Integrated Moving Average Model
This paper uses Box-Jenkins approach to model and forecast real GDP growth in Ethiopia. Such an approach could easily provide forecast for key macroeconomic variables in limited data environment. Based on the approach, t...
The Impact of Trade Liberalization on Health: Evidence from Pakistan
The literature predicts both positive and negative health outcomes in developing economies as a result of increasing trade. Does openness to trade help to improve health indicators in the case of Pakistan? This study att...
Globalization-Poverty Nexuses: Evidences from Cross-Country Analysis
The current study examines the impact of globalization on poverty across 119 countries by utilizing poverty headcount index based on 1.90$ international poverty line and KOF globalization index developed by Dreher, Gasto...
Financial Cointegration of Emerging Economies: Evidence from Bivariate Cointegration and Granger Causality
The study at hand examined financial cointegration of emerging economies and explored the diversification opportunities which are available for investors of developed countries. For the long run and causal relationship,...