Abstract:
Zimbabwe’s international exposure after the attainment of independence in 1980 and through the
introduction of structural adjustment programs was meant to, among other macroeconomic objectives, enhance
export performance. The Zimbabwe Agenda for Sustainable Socio–Economic Transformation (Zim-ASSET), a
developed economic blue print for the country, with the intention of re-engaging the international community
has motivated this research study to investigate export performance in Zimbabwe. Therefore, the purpose of
this research study is to examine the effect of FDI on Zimbabwe’s export performance considering the influence
of other variables such as economic growth and terms of trade. To investigate such a relationship, the research
study employed the Autoregressive Distributed Lag Analysis (ARDL) on time series data for the period 1980
to 2016. The results show a positive relationship between export performance and FDI. Furthermore, other
control variables such as economic growth and terms of trade were also positively related to exports. Thus
the study recommends the government of Zimbabwe to maintain political stability in the economy to attract
FDI. Moreover, the government should loosen the local industrial laws to promote exports.
Description:
Journal article published in the International Conference on Public Administration and Development Alternatives, 04 - 06 July 2018, Stellenbosch University, Saldahna Bay, South Africa