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Private investment, government policy, and foreign capital in Zimbabwe

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  • Dailami, Mansoor
  • Walton, Michael

Abstract

Policy measures to encourage recovery of private investment in Zimbabwe should focus not on measures to raise current profits but on measures to relieve supply side constraints, to reduce perceived risk, to clearly define the rules of the game for foreign investors, and to create a more favorable environment for investment decision making. Together these measures would constitute a radical shift in the business environment - one that need not lead to an unwarranted rise in either the foreign share of profits or the share of foreign capital in the economy. Dailami and Walton conclude that no simple policy shift will initiate and sustain the recovery of private investment in Zimbabwe. The reasons for weak private investment are complex. Adjustments in conventional areas are unlikely to work when the problem also lies in the overall environment for investment decision making and intangible perceptions of future risk.

Suggested Citation

  • Dailami, Mansoor & Walton, Michael, 1989. "Private investment, government policy, and foreign capital in Zimbabwe," Policy Research Working Paper Series 248, The World Bank.
    • Handle: RePEc:wbk:wbrwps:248
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    References listed on IDEAS

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    Cited by:

    1. Rama, Martin, 1990. "Empirical investment equations in developing countries," Policy Research Working Paper Series 563, The World Bank.
    2. Jamil, Faisal, 2012. "Impact of different public E&P policies on natural gas reserves and production in Pakistan," Resources Policy, Elsevier, vol. 37(3), pages 368-374.
    3. Davies, Rob & Rattso, Jorn & Torvik, Ragnar, 1998. "Short-Run Consequences of Trade Liberalization: A Computable General Equilibrium Model of Zimbabwe," Journal of Policy Modeling, Elsevier, vol. 20(3), pages 305-333, June.
    4. Bayraktar, Nihal & Fofack, Hippolyte, 2007. "Specification of investment functions in Sub-Saharan Africa," Policy Research Working Paper Series 4171, The World Bank.
    5. Babajide Fowowe, 2008. "Financial Liberalization Policies and Economic Growth: Panel Data Evidence from Sub‐Saharan Africa," African Development Review, African Development Bank, vol. 20(3), pages 549-574.
    6. Ajay Chhibber & Mansoor Dailami, 1993. "Fiscal Policy and Private Investment in Developing Countries: Recent Evidence on Key Selected Issues," Palgrave Macmillan Books, in: Riccardo Faini & Jaime Melo (ed.), Fiscal Issues in Adjustment in Developing Countries, pages 121-150, Palgrave Macmillan.
    7. Muyambiri, Brian & Chiwira, Oscar & Enowbi Batuo, Michael & Chiranga, Ngonidzashe, 2010. "The Causal Relationship between Private and Public Investment in Zimbabwe," MPRA Paper 26671, University Library of Munich, Germany.
    8. Davies, Rob & Rattso, Jorn, 1996. "Growth, distribution and environment: Macroeconomic issues in Zimbabwe," World Development, Elsevier, vol. 24(2), pages 395-405, February.
    9. Nyoni, Thabani, 2018. "Box-Jenkins ARIMA approach to predicting net FDI inflows in Zimbabwe," MPRA Paper 87737, University Library of Munich, Germany.
    10. Torvik, Ragnar, 1997. "Agricultural supply-led industrialization: A macromodel with sub-Saharan African characteristics," Structural Change and Economic Dynamics, Elsevier, vol. 8(3), pages 351-370, August.
    11. Rattso, Jorn & Torvik, Ragnar, 1998. "Economic openness, trade restrictions and external shocks: modelling short run effects in Sub-Saharan Africa," Economic Modelling, Elsevier, vol. 15(2), pages 257-286, April.
    12. Elbadawi, Ibrahim A. & Schmidt-Hebbel, Klaus, 1991. "Macroeconomic structure and policy in Zimbabwe, analysis and empirical model : 1965-1988," Policy Research Working Paper Series 771, The World Bank.
    13. Sandford, Stephen & Scoones, Ian, 2006. "Opportunistic and conservative pastoral strategies: Some economic arguments," Ecological Economics, Elsevier, vol. 58(1), pages 1-16, June.

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