- Title
- The effect of illicit financial flows on Zimbabwe's economic growth and development
- Creator
- Chirowamhangu, Elton Munyaradzi
- Subject
- Funds-flow statements -- Zimbamwe
- Subject
- Economic Growth -- Zimbamwe
- Date Issued
- 2023-04
- Date
- 2023-04
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10948/61034
- Identifier
- vital:69687
- Description
- This study examines the effect of Illicit Financial Flows (IFFs) and capital flight on Zimbabwe’s economic growth and development. The study data covered the period 1980-2020 applying the Autoregressive Distributed Lag (ARDL) regression model to assess the relationship between IFFs and capital flight and Zimbabwe’s economic growth and development. Most empirical studies on developing countries show that in both the short and long run, IFFs and capital flight not only reduce the revenue base of the economy but its multiplier effects result in a negative significant relationship between economic growth and development. This supports the continued call for policymakers and government to develop effective policies and continue to have intergovernmental and bilateral engagements to share knowledge and information to deter and control these activities. Unless these activities are controlled, most developing countries will have revenue shortfalls that will have to be funded from Other Donor Assistance (ODA), AID and loans. The study used two ARDL models to assess the impact of GDP and Manufacturing output to assess the impact. GDP and Manufacturing output have been chosen as the proxies of economic growth. Data showed that capital flight had a positive coefficient relationship with GDP in the long run. It was statistically significant and capital flight also had a negative and insignificant effect on manufacturing output during the period 1980-2020. Thus, Zimbabwe should effectively engage in policies and measures that identify and deter IFFs and capital flight activities because the multiplier effects of the activities have a negative impact on economic growth and development. The continued depletion of state resources discredits the objectives of the government to achieve the 2030 Millennium Development Goals. Government expenditure in nonproductive sectors must be avoided, instead, priority must be given to sectors that attract investors and stimulate economic growth and development.
- Description
- Thesis (MA) -- Faculty of business and economic sciences, 2023
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (x11, 140 pages)
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of business and economic sciences
- Language
- English
- Rights
- Nelson Mandela University
- Rights
- All Rights Reserved
- Rights
- Open Access
- Hits: 180
- Visitors: 195
- Downloads: 37
Collections
NMU School for Economics, Development and Tourism
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | CHIROWAMHANGU EM.pdf | 2 MB | Adobe Acrobat PDF | View Details Download |