Private Investment, Government Policy and Foreign Capital: A Study of the Zimbabwean Experience

Dailami, Mansoor; Walton, Michael

doi:10.1016/b978-0-444-89395-6.50014-0

Cited by 18 publications

(14 citation statements)

References 6 publications

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“…Labour productivity growth may be one reason for this implementation problem. Another possibility is the labour market regulations which are important for labour demand according to Dailami and Walton (1989). They found that the strong job security regulations (requiring government approval of employees dismissal) made labour become more like a fixed cost which cannot be adjusted in the event of fluctuations in sales.…”

Section: Discussionmentioning

confidence: 98%

“…Dailami and Walton (1989), Davies (1991), Davies and Rattso (1993), and Green and Khadani (1986) discuss recent economic experiences emphasizing the foreign exchange constraint and government regulations. Econometric analyses of macroeconomic relationships are offered by Chhibber et al (1989), Elbadawi and Schmidt-Hebbel (1991a,b) and Mehlum and Rattso (1993).…”

Section: Stylized Facts and Model Guidelinesmentioning

confidence: 98%

“…As shown in Table 2, total investments have not varied much. The general understanding is that investment demand was restricted by political and business uncertainty (see Dailami and Walton, 1989). According to econometric studies, it is hard to identify a well defined investment function (see Mehlum andRattso, 1993 andChhibber et al, 1989).…”

Section: The Modelmentioning

confidence: 99%

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The Macroeconomics of Zimbabwe in the 1980s: a CGE-Model Analysis1

Davies

Rattsø

Torvik

1994

Journal of African Economies

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Macroeconomic development in Zimbabwe is analyzed in terms of sectoral balance and distributional shifts. The economic performance during the period 1981-88 is evaluated with a five sector CGE model assuming endogenous import rationing. A foreign exchange constraint links the exportables sector performance and the rationing of imported intermediates to the import-dependent construction and importables sectors. Agricultural shocks and import compression policies are shown to be the major explanatory factors for the fluctuation and stagnation of economic growth. In counterfactual experiments, expansionary devaluation and contractionary investment expansion are the result of the foreign exchange constraint.

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Section: Discussionmentioning

confidence: 98%

Section: Stylized Facts and Model Guidelinesmentioning

confidence: 98%

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The Macroeconomics of Zimbabwe in the 1980s: a CGE-Model Analysis1

Davies

Rattsø

Torvik

1994

Journal of African Economies

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“…Dailami and Walton (1992) examined the behavior of private investment in Zimbabwe over the period 1970 to 1987. The results showed that private investment is positively related to GNP growth, real interest rate, real effective exchange rate, and the lagged dependent variable, and negatively related to the government bond yield, relative price of capital goods, and real wage.…”

Section: Literature Reviewmentioning

confidence: 99%

Modelling the Long Run Determinants of Domestic Private Investment in Nigeria

Ajide¹,

Lawanson²

2012

ASS

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The paper seeks to model the long run determinants of domestic private investment in Nigeria over the period 1970 to 2010, employing advanced econometric technique of Auto-Regressive Distributed Lag (ARDL) bounds testing approach. Emanated from the estimated models are intriguing findings which showed clearly that difference exist between long and short run determinants. Public investment, real GDP, real interest rate, exchange rate, credit to the private sector, terms of trade, external debts and reforms dummy are the key long run determinants of domestic private investment while public investment, real GDP and terms of trade are statistically significant in the short run. The policy prescriptions are that necessary infrastructures to complement domestic private investment should be put in place; that external debts be reduced to the barest minimum and negative effects of external shocks engendered by foreign direct investment uncertainty and deficit terms of trade should be prevented altogether.

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“…ment function see Mehlum and Rattsø, 1996;Chhibber et al, 1989 , and the understanding that investment demand is restricted by political and business Ž . uncertainty see Dailami and Walton, 1992 . Our formulation, which assumes a given total investment, is consistent with the alternative understanding that investment has been restricted by import rationing.…”

Section: A Cge Model Of Zimbabwementioning

confidence: 99%