On the Duration of Self-Employment: The Impact of Macroeconomic Conditions

M. Nziramasanga and Minsoo Lee

Journal of Development Studies, 2002, vol. 39, issue 1, 46-73

Abstract: The article examines the role of lending rates, imports and growth on the duration of self-employment in Zimbabwe while the country embarked on trade liberalisation. The variables were selected because of their importance as policy variables in reform programmes and also their importance to small entrepreneurs. Previous research has established the importance of an initial endowment and other measures of human capital on entry into self-employment as well as growth of the respective enterprises. We show that such initial conditions do not always give robust results. Instead, duration of self-employment is negatively related to higher lending rates, increased imports and structural change, but responds positively to growth.

Keywords: lending rates; imports and growth; self-employment in Zimbabwe; trade liberalisation; reform programmes (search for similar items in EconPapers)
Date: 2002
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DOI: 10.1080/00220380412331322661

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