International Capital Flows: An Influence of the Level Of Infrastructural Development in Zimbabwe.
This research studied the impact of infrastructural development on FDI inflows into Zimbabwe using annual time series data ranging from 1994 to 2015. Explanatory variables that determine FDI that were included in the study include market size, trade openness and financial sector development. Usin...
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| Format: | Article |
| Language: | English |
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Danubius University
2017-08-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
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| Online Access: | http://journals.univ-danubius.ro/index.php/oeconomica/article/view/3892/4148 |
| Summary: | This research studied the impact of infrastructural development on FDI inflows into
Zimbabwe using annual time series data ranging from 1994 to 2015. Explanatory variables that
determine FDI that were included in the study include market size, trade openness and financial sector
development. Using the OLS –Heteroskedastic and Standard Error Consistent White Test approach, the
study found out that infrastructural development as measured by internet users (per 100 people) had a
positive and a significant impact on FDI inflows in Zimbabwe in line with both theory and empirical
predictions. Furthermore, market size, trade openness and financial sector development in line with
literature were found to have had a positive and significant influence on FDI inflows into Zimbabwe.
In order to improve the inflow of net FDI into the country, Zimbabwean authorities need to create a
conducive environment that entices foreign investors to invest into the country. This includes the
formulation and implementation of policies that enhances infrastructural development, open up trade
with other countries and grow the economy. |
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| ISSN: | 2065-0175 2067-340X |