The impact of foreign direct investment and government expenditure on mining output in Zimbabwe from 1985 to 2017.
The main aim of this study is to empirically examine the impacts of foreign direct investment and government expenditure on mining output in Zimbabwe from the period 1985 to 2017. The research has been carried out since there has been a decline in mining output since late which is attributed to different government policies. To find out the relationship between foreign direct investment, government expenditure, and mining output OLS method was used and other explanatory variable like labour force, bank loans, capital employed, and inflation were also included. The study uses time series data which was collected from ZIMSTATS, WORLD BANK and UNCTAD, and the researcher uses Eview 7 software for data analysis. The results obtained from the analysis shows that foreign direct investment has a significant and positive contribution to mining. The finding from the study also shows that bank loans and capital employed has a significant and positive relationship with mining output. Inflation has a negative relationship with mining output while labour force employed and government expenditure in the mining sector does not have a significant relationship with mining output. The researcher goes on further to recommend the possible resolutions which can be done to improve the performance of the mining sector. These resolutions include increase government revenue and monetary policy which will reduce the interest rates leading to increased loans to the sector.
- Department of Economics