The Impact of Foreign Direct Investment on Economic Growth: The Case of Zimbabwe (2009- 2012)
International Journal of Economics, Finance and Management Sciences
Volume 1, Issue 6, December 2013, Pages: 323-329
Received: Sep. 16, 2013; Published: Nov. 10, 2013
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Author
Tinomuonga Moyo, Great Zimbabwe University, Department of Banking & Finance
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Abstract
This paper analyzes the impact of Foreign Direct Investment on GDP in Zimbabwe, post dollarization period. Foreign Direct Investment has very significant positive impact on economic growth. I advocate for policies that promote inward FDI if our country is to meet its economic growth targets. The paper also analyses the impact of other macro economic factors on Gross Domestic product. Government Expenditure and Private Investment is found to have significant and positive impact on Gross Domestic Product. Factors that are found to affect GDP negatively are increases in Inflation and Interest Rates. The Zimbabwean data was inconclusive on the impact of two factors on Economic Growth, Which is External Debt and Net Exports; this merits further research because it is not in line with the theoretical predictions.
Keywords
Foreign Direct Investment, Gross Domestic Product, Inflation, External Debt, Net exports, Private Investment
To cite this article
Tinomuonga Moyo, The Impact of Foreign Direct Investment on Economic Growth: The Case of Zimbabwe (2009- 2012), International Journal of Economics, Finance and Management Sciences. Vol. 1, No. 6, 2013, pp. 323-329. doi: 10.11648/j.ijefm.20130106.19
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