The Impact of foreign direct investment on economic growth in Zimbabwe (1980-2017)
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This research is focused on the impact of FDI on economic growth in Zimbabwe from 1980- to 2017, using the Ordinary Least Squares (OLS) method. The regression model was estimated using secondary data obtained from various economic organizations. The independent variables used were FDI, domestic investment, interest rates and government expenditure and GDP was the independent variables. After regression, results proved that FDI, government expenditure and interest rates are statistically significant. After establishing that FDI is of paramount importance in promoting economic growth, the researcher went on to recommend that the government implements policies that improve the flow of FDI into the country, for instance, ensuring that there is political stability as this will attract more foreign investors into the country. Also, GDP would probably be enhanced by embracing and incorporating additional measures that would facilitate an increase in the country’s output such as increasing capacity in the mining industry and the agricultural sector as well.
- Department of Economics