Comparative Analysis of the Determinants and Behaviour of Investment Demand between South Africa and Zimbabwe

Sambulo Malumisa

Journal of Economics and Behavioral Studies, 2013, vol. 5, issue 6, 385-397

Abstract: The study investigates the determinants of private investment in South Africa and Zimbabwe employing annual data over the 1980-2010 periods. The influence of gross domestic product (GDP), government debt, inflation, and interest rate policies are considered. Applied vector autoregressive and error correction models are used to estimate long- and short-run relationships among variables. The results suggest that GDP has a positive effect on private investment. Government debt has a crowding out effect on private investment, and inflation is shown to negatively affect investment. Increases in interest rates discourage private investment in South Africa

Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arjebs:v:5:y:2013:i:6:p:385-397

DOI: 10.22610/jebs.v5i6.413

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