The economic impact of special economic zones: the case of Zimbabwe
- Authors: Murota, Richard
- Date: 2017
- Subjects: Economic zoning -- Zimbabwe , Export processing zones -- Zimbabwe Zimbabwe -- Economic conditions
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/19354 , vital:28857
- Description: his study seeks to establish the impact of SEZs in Zimbabwe. Precisely, the study intends to establish whether the creation of economic zones resulted in increase in exports and attracting foreign direct investment. The study used times series data covering the period from 1995 to 2010. Using a conceptual framework adopted from Wang (2009), regression analysis of data using tax as the indicator of incentives was carried out. Firstly, data was transformed into natural logarithms for removal of data asymmetries given the wide variations of some of the variables. The data were subjected to ADF and PP tests for stationarity. The result showed that variables closely follow the normal distribution, a condition necessary for econometric modelling of time series data. The Johansen test was used to check for co-integration and validated that variables were not co-integrated. Analysis of the data revealed that tax incentives had an insignificant impact on both exports and FDIs in Zimbabwe, implying that SEZs did not have any positive effect on exports or FDI. The impulse response and variation decomposition tests were carried out to check responses of exports and FDI to shocks in taxes showed insignificant responses. The empirical results validated that there was no significant relationship between incentives and exports. This means that exports did not increase as expected. Based on these research findings, it can be concluded that special economic zones in Zimbabwe do not have an impact on exports. Regarding FDIs, the empirical results validated that the tax incentives placed on the scheme had an insignificant relationship with FDI inflows. This means that FDI inflows did not increase because of the introduction of the EPZ scheme. Similarly, based on these research findings, it can be concluded that special economic zones’ incentives do not support significant inflows of FDI into Zimbabwe. As Zimbabwe is re-introducing the SEZ scheme it is recommended that the country should enact investor friendly laws, reduce bureaucracy, create an enabling economic environment and exploit its comparative advantages if it is to optimize on the initiative.
- Full Text:
- Date Issued: 2017
- Authors: Murota, Richard
- Date: 2017
- Subjects: Economic zoning -- Zimbabwe , Export processing zones -- Zimbabwe Zimbabwe -- Economic conditions
- Language: English
- Type: Thesis , Masters , MPhil
- Identifier: http://hdl.handle.net/10948/19354 , vital:28857
- Description: his study seeks to establish the impact of SEZs in Zimbabwe. Precisely, the study intends to establish whether the creation of economic zones resulted in increase in exports and attracting foreign direct investment. The study used times series data covering the period from 1995 to 2010. Using a conceptual framework adopted from Wang (2009), regression analysis of data using tax as the indicator of incentives was carried out. Firstly, data was transformed into natural logarithms for removal of data asymmetries given the wide variations of some of the variables. The data were subjected to ADF and PP tests for stationarity. The result showed that variables closely follow the normal distribution, a condition necessary for econometric modelling of time series data. The Johansen test was used to check for co-integration and validated that variables were not co-integrated. Analysis of the data revealed that tax incentives had an insignificant impact on both exports and FDIs in Zimbabwe, implying that SEZs did not have any positive effect on exports or FDI. The impulse response and variation decomposition tests were carried out to check responses of exports and FDI to shocks in taxes showed insignificant responses. The empirical results validated that there was no significant relationship between incentives and exports. This means that exports did not increase as expected. Based on these research findings, it can be concluded that special economic zones in Zimbabwe do not have an impact on exports. Regarding FDIs, the empirical results validated that the tax incentives placed on the scheme had an insignificant relationship with FDI inflows. This means that FDI inflows did not increase because of the introduction of the EPZ scheme. Similarly, based on these research findings, it can be concluded that special economic zones’ incentives do not support significant inflows of FDI into Zimbabwe. As Zimbabwe is re-introducing the SEZ scheme it is recommended that the country should enact investor friendly laws, reduce bureaucracy, create an enabling economic environment and exploit its comparative advantages if it is to optimize on the initiative.
- Full Text:
- Date Issued: 2017
Build-Operate and Transfer (BOT) as a method of private provisioning of public infrastructure
- Authors: Madungandaba, Ruth Tshweu
- Date: 2016
- Subjects: Infrastructure (Economics) , Build-operate-transfer (Public contracts) , Public goods
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/8425 , vital:26355
- Description: BOT scheme method of public infrastructure provisioning by the private sector is one of the most popular PPP methods which in most cases is applied as an automatic choice without performing feasibility studies. It helps the governments to provide infrastructure and services with minimal impact on the governmental budget while allowing it to leverage the latest technology and efficient managerial skill that resides with the private sector. The study that was conducted revealed that BOT scheme has a potential of being the best modality of if applied properly. This modality has a potential of creating a breeding group for corruption at the same time. It also revealed that the application of due processes will not necessarily deter corruption, lack of and exclusion of important stakeholders such as the citizens. The findings of the study revealed that the ruling party in the government can abuse its power in pursuit of its own mission which will not necessarily be in the interest of the public or the other political parties.
- Full Text:
- Date Issued: 2016
- Authors: Madungandaba, Ruth Tshweu
- Date: 2016
- Subjects: Infrastructure (Economics) , Build-operate-transfer (Public contracts) , Public goods
- Language: English
- Type: Thesis , Masters , MBA
- Identifier: http://hdl.handle.net/10948/8425 , vital:26355
- Description: BOT scheme method of public infrastructure provisioning by the private sector is one of the most popular PPP methods which in most cases is applied as an automatic choice without performing feasibility studies. It helps the governments to provide infrastructure and services with minimal impact on the governmental budget while allowing it to leverage the latest technology and efficient managerial skill that resides with the private sector. The study that was conducted revealed that BOT scheme has a potential of being the best modality of if applied properly. This modality has a potential of creating a breeding group for corruption at the same time. It also revealed that the application of due processes will not necessarily deter corruption, lack of and exclusion of important stakeholders such as the citizens. The findings of the study revealed that the ruling party in the government can abuse its power in pursuit of its own mission which will not necessarily be in the interest of the public or the other political parties.
- Full Text:
- Date Issued: 2016
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