The impact of government budget deficit on private investment in Zimbabwe from (1980 to 2016).
The study seeks to investigate the impact of government budget deficit on private investment in Zimbabwe from 1980 to 2016.The research used secondary data which was obtained from credible sources which included ZIMSTATS, World Bank and Ministry of Finance website and publications. The data was analysed using E-Views econometric software and Ordinary Least squares (OLS) was employed in the estimation of the results. All variables used in the analysis were found to be significant in determining private investment. The results show that government budget deficit and domestic savings have got a positive relationship with private investment while net exports has a negative relationship with private investment. The key findings of the research was that in Zimbabwe there is crowding in effect of private investment by government budget deficit. The study went on to suggest possible recommendations which the government can adopt to improve private investment and these recommendations include formalisation of the informal sector the creation of a conducive environment for private investment by minimise the administrative barriers to private investment so as to attract more foreign investors to invest in the country.
- Department of Economics