- Title
- The economic impact of special economic zones: the case of Zimbabwe
- Creator
- Murota, Richard
- Subject
- Economic zoning -- Zimbabwe
- Subject
- Export processing zones -- Zimbabwe Zimbabwe -- Economic conditions
- Date Issued
- 2017
- Date
- 2017
- Type
- Thesis
- Type
- Masters
- Type
- MPhil
- Identifier
- http://hdl.handle.net/10948/19354
- Identifier
- 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.
- Format
- xii, 76 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
- Hits: 986
- Visitors: 1137
- Downloads: 292
Collections
NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | The economic impact of special economic zones: the case of Zimbabwe | 1 MB | Adobe Acrobat PDF | View Details Download |