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The effect of mining foreign direct investment inflow on the economic growth of Zimbabwe

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  • Plaxedes Gochero

    (Open University of Mauritius)

  • Seetanah Boopen

    (University of Mauritius)

Abstract

The study employs the autoregressive distributed lag (ARDL) approach to examine the relationship between foreign direct investment (FDI) in the mining sector on the Zimbabwe economy, while controlling for both non-mining FDI and domestic investment. Using data over the period 1988–2018, this research results show that foreign direct investment in the mining sector has a significant positive relationship with the country’s GDP in the long run. Mining FDI is revealed to have relatively higher effects as compared to FDI in non-mining sector and domestic investment. The short-run analysis observed that mining FDI as well as non-mining and domestic investment still has positive and significant impacts on growth but at a relatively lower extent. This implies that it takes some time for such investments to have their full effect on the economy.

Suggested Citation

  • Plaxedes Gochero & Seetanah Boopen, 2020. "The effect of mining foreign direct investment inflow on the economic growth of Zimbabwe," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 9(1), pages 1-17, December.
    • Handle: RePEc:spr:jecstr:v:9:y:2020:i:1:d:10.1186_s40008-020-00230-4
    DOI: 10.1186/s40008-020-00230-4
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    2. MT Musakwa, 2023. "Does Foreign Direct Investment Influence Poverty In Zimbabwe? A Multivariate Approach," Working Papers AESRI-2023-26, African Economic and Social Research Institute (AESRI), revised Aug 2023.
    3. Takam Tiamgne, Xavier & Kalaba, Felix K. & Nyirenda, Vincent R., 2022. "Mining and socio-ecological systems: A systematic review of Sub-Saharan Africa," Resources Policy, Elsevier, vol. 78(C).
    4. Larissa Batrancea & Malar Mozhi Rathnaswamy & Ioan Batrancea, 2021. "A Panel Data Analysis of Economic Growth Determinants in 34 African Countries," JRFM, MDPI, vol. 14(6), pages 1-15, June.
    5. Brahim Bergougui & Syed Mansoob Murshed, 2023. "Spillover effects of FDI inflows on output growth: An analysis of aggregate and disaggregated FDI inflows of 13 MENA economies," Australian Economic Papers, Wiley Blackwell, vol. 62(4), pages 668-692, December.

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