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 137
- Downloads 0
Financial Variables as Predictive Indicators of the Luxembourg GDP Growth
The last financial crisis has had negative impacts on economic growth underlining the contagion between the financial sphere and the real sphere. Indeed, in many developed economies then aggregate production fell abruptl...
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...
Application of Financial Decisions, their Determinants, and Financial Performance: A Tabular Summary of Systematic Literature Review
Financial decisions (capital budgeting, capital structure and dividend policy) are the most important components of corporate finance and now a days have received the attention of researchers and practitioners. Financial...
Pakistan’s Electricity Demand Analysis 1975-2016
The problem of energy is one that has plagued the economic growth of Pakistan for decades; the resulting domestic pressure has often led to the misallocation of resources, and therefore should be studied extensively for...
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...