Public and private investment and economic growth in Zimbabwe: An empirical test
Journal Title: Business and Economic Horizons - Year 2017, Vol 13, Issue 1
Abstract
This study performs an examination on the impact of public and private investment on economic growth and the crowding effect of public investment on private investment in Zimbabwe from 1970 to 2014. The study utilised the newly developed autoregressive distributed lag-bounds testing approach with better small sample properties than the traditional cointegration techniques. The results show that public investment has a higher short-run growth impact, but in the long run the private investment-led growth is more important. In addition, while gross public investment crowds out private investment, infrastructural public investment has a long-run crowding in effect. A non-infrastructural public investment was also reported to have a short-run crowding out effect on private investment. The results suggest that the productivity of public and private investment in Zimbabwe can be improved by cutting back on non-infrastructural public investment to basic minimum level while stimulating the growth in infrastructural public investment.
Authors and Affiliations
Garikai Makuyana, Nicholas M. Odhiambo
Keywords
Related Articles
- EP ID EP448179
- DOI 10.15208/beh.2017.05
- Views 88
- Downloads 0
Socialization: An important factor of redenomination success in Indonesia
Redenomination discourse has become a concern, again, in line with the instructions of the Indonesian President to the Finance Minister to re-socialize the program to the society. Socialization is important given the Ind...
Assessing the financial security of the engineering enterprises as preconditions of application of anti-crisis management: practical aspect
Today, engineering enterprises in Ukraine are experiencing poor development. The crisis development of many domestic engineering enterprises is reinforced by both internal and external factors, so it is critical to devel...
Determinants of Chinese demand for tourism in Malaysia
Tourism sector in Malaysia has always been one of its focal service industries not only in the past, but in the future as well in which Malaysian government has been focusing on diverting its economic activities from a r...
Demand-side factors of housing price increases in Turkey: Blanchard-Quah SVAR model
A bubble in the housing sector is defined as an unprecedented upsurge in house prices which cannot explained by fundamental determinants of the housing sector. This study examines demand-side factors of real estate secto...
Board diversity, audit committee characteristics and audit quality: The moderating role of control-ownership wedge
This study illustrates how control-ownership wedge impacts the monitoring role of the corporate board through the quality of audit services in Turkey. Turkey has made essential amendments in the field of external audit i...