Government expenditure and economic growth in Zimbabwe

The International Monetary Fund’s (IMF) 2017 Article IV Consultation report on Zimbabwe’s economic update claims that unchecked government expenditure could be a hindrance to long term economic growth. Therefore, particularly on public wages, effort is required to cut general consumption in favour o...

Ausführliche Beschreibung

Gespeichert in:
Bibliographische Detailangaben
Veröffentlicht in:African journal of business and economic research 2018-08, Vol.13 (2), p.183-202
1. Verfasser: Mazorodze, Brian Tavonga
Format: Artikel
Sprache:eng
Schlagworte:
Online-Zugang:Volltext
Tags: Tag hinzufügen
Keine Tags, Fügen Sie den ersten Tag hinzu!
container_end_page 202
container_issue 2
container_start_page 183
container_title African journal of business and economic research
container_volume 13
creator Mazorodze, Brian Tavonga
description The International Monetary Fund’s (IMF) 2017 Article IV Consultation report on Zimbabwe’s economic update claims that unchecked government expenditure could be a hindrance to long term economic growth. Therefore, particularly on public wages, effort is required to cut general consumption in favour of investment expenditure. Testing this claim requires separating the effects of government general consumption and government investment expenditure on economic growth. Applying the ARDL, DOLS, FMOLS and CCR techniques for the period of 1979 – 2017, this paper finds a significantly positive causal effect between both expenditure components on long term economic growth in Zimbabwe. Investment expenditure has a larger effect (0.1 – 0.8%) in comparison to consumption expenditure (0.02% – 0.03%). Based on the evidence, this paper argues that the IMF’s advice of expenditure cuts to raise growth in Zimbabwe could be empirically misleading as such advice is not supported by the data analysed.
doi_str_mv 10.31920/1750-4562/2018/v13n2a9
format Article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_journals_2119846403</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><sabinet_id>https://hdl.handle.net/10520/EJC-10dd1a8e87</sabinet_id><sourcerecordid>2119846403</sourcerecordid><originalsourceid>FETCH-LOGICAL-c288t-29f7684198e69c5ae883cf9a933a0e0706632e856ea987346a18c9df4fb5d443</originalsourceid><addsrcrecordid>eNo9kE9Lw0AQxRdRsNR-BgOeY_d_dk8ipVal4KUnL8smmZiUZhN301a_vRtbOpd5MPPeDD-E7gl-ZERTPCeZwCkXks4pJmp-IMxRq6_Q5DK4vmjBb9EshC2OJXjGBZ4gueoO4F0LbkjgpwdXNsPeQ2JdmUDRua5tiuTLd8ehThqXfDZtbvMj3KGbyu4CzM59ijYvy83iNV1_rN4Wz-u0oEoNKdVVJhUnWoHUhbCgFCsqbTVjFgPOsJSMghISrFYZ49ISVeiy4lUuSs7ZFD2cYnvffe8hDGbb7b2LFw0lMZVLjlncyk5bhe9C8FCZ3jet9b-GYPOPyYwEzEjDjJjMGVN0Pp2cweaNg8EEC_0-N_Uw9MHU5c7UEcQOzDgjWMSk5fsiqrIkVkF8-Q_aUnCS</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>2119846403</pqid></control><display><type>article</type><title>Government expenditure and economic growth in Zimbabwe</title><source>Business Source® Complete</source><creator>Mazorodze, Brian Tavonga</creator><creatorcontrib>Mazorodze, Brian Tavonga</creatorcontrib><description>The International Monetary Fund’s (IMF) 2017 Article IV Consultation report on Zimbabwe’s economic update claims that unchecked government expenditure could be a hindrance to long term economic growth. Therefore, particularly on public wages, effort is required to cut general consumption in favour of investment expenditure. Testing this claim requires separating the effects of government general consumption and government investment expenditure on economic growth. Applying the ARDL, DOLS, FMOLS and CCR techniques for the period of 1979 – 2017, this paper finds a significantly positive causal effect between both expenditure components on long term economic growth in Zimbabwe. Investment expenditure has a larger effect (0.1 – 0.8%) in comparison to consumption expenditure (0.02% – 0.03%). Based on the evidence, this paper argues that the IMF’s advice of expenditure cuts to raise growth in Zimbabwe could be empirically misleading as such advice is not supported by the data analysed.</description><identifier>ISSN: 1750-4554</identifier><identifier>EISSN: 1750-4562</identifier><identifier>DOI: 10.31920/1750-4562/2018/v13n2a9</identifier><language>eng</language><publisher>London: Adonis &amp; Abbey Publishers</publisher><subject>ARDL ; Capital stock ; Causality ; Consumption ; Econometrics ; Economic crisis ; Economic growth ; Economic models ; Expenditures ; Fixed assets ; GDP ; Government consumption ; Government spending ; Gross Domestic Product ; Hypotheses ; International trade ; Investment expenditure ; Investments ; Macroeconomics ; Public sector ; Taxes ; Time series ; Wages &amp; salaries ; Zimbabwe</subject><ispartof>African journal of business and economic research, 2018-08, Vol.13 (2), p.183-202</ispartof><rights>Copyright Adonis &amp; Abbey Publishers Ltd Aug 2018</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c288t-29f7684198e69c5ae883cf9a933a0e0706632e856ea987346a18c9df4fb5d443</citedby></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,780,784,27924,27925</link.rule.ids></links><search><creatorcontrib>Mazorodze, Brian Tavonga</creatorcontrib><title>Government expenditure and economic growth in Zimbabwe</title><title>African journal of business and economic research</title><description>The International Monetary Fund’s (IMF) 2017 Article IV Consultation report on Zimbabwe’s economic update claims that unchecked government expenditure could be a hindrance to long term economic growth. Therefore, particularly on public wages, effort is required to cut general consumption in favour of investment expenditure. Testing this claim requires separating the effects of government general consumption and government investment expenditure on economic growth. Applying the ARDL, DOLS, FMOLS and CCR techniques for the period of 1979 – 2017, this paper finds a significantly positive causal effect between both expenditure components on long term economic growth in Zimbabwe. Investment expenditure has a larger effect (0.1 – 0.8%) in comparison to consumption expenditure (0.02% – 0.03%). Based on the evidence, this paper argues that the IMF’s advice of expenditure cuts to raise growth in Zimbabwe could be empirically misleading as such advice is not supported by the data analysed.</description><subject>ARDL</subject><subject>Capital stock</subject><subject>Causality</subject><subject>Consumption</subject><subject>Econometrics</subject><subject>Economic crisis</subject><subject>Economic growth</subject><subject>Economic models</subject><subject>Expenditures</subject><subject>Fixed assets</subject><subject>GDP</subject><subject>Government consumption</subject><subject>Government spending</subject><subject>Gross Domestic Product</subject><subject>Hypotheses</subject><subject>International trade</subject><subject>Investment expenditure</subject><subject>Investments</subject><subject>Macroeconomics</subject><subject>Public sector</subject><subject>Taxes</subject><subject>Time series</subject><subject>Wages &amp; salaries</subject><subject>Zimbabwe</subject><issn>1750-4554</issn><issn>1750-4562</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2018</creationdate><recordtype>article</recordtype><sourceid>ABUWG</sourceid><sourceid>AFKRA</sourceid><sourceid>BENPR</sourceid><sourceid>CCPQU</sourceid><sourceid>DWQXO</sourceid><recordid>eNo9kE9Lw0AQxRdRsNR-BgOeY_d_dk8ipVal4KUnL8smmZiUZhN301a_vRtbOpd5MPPeDD-E7gl-ZERTPCeZwCkXks4pJmp-IMxRq6_Q5DK4vmjBb9EshC2OJXjGBZ4gueoO4F0LbkjgpwdXNsPeQ2JdmUDRua5tiuTLd8ehThqXfDZtbvMj3KGbyu4CzM59ijYvy83iNV1_rN4Wz-u0oEoNKdVVJhUnWoHUhbCgFCsqbTVjFgPOsJSMghISrFYZ49ISVeiy4lUuSs7ZFD2cYnvffe8hDGbb7b2LFw0lMZVLjlncyk5bhe9C8FCZ3jet9b-GYPOPyYwEzEjDjJjMGVN0Pp2cweaNg8EEC_0-N_Uw9MHU5c7UEcQOzDgjWMSk5fsiqrIkVkF8-Q_aUnCS</recordid><startdate>20180801</startdate><enddate>20180801</enddate><creator>Mazorodze, Brian Tavonga</creator><general>Adonis &amp; Abbey Publishers</general><general>Adonis &amp; Abbey Publishers Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>3V.</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>8BJ</scope><scope>8FK</scope><scope>8FL</scope><scope>ABUWG</scope><scope>AFKRA</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FQK</scope><scope>FRNLG</scope><scope>F~G</scope><scope>JBE</scope><scope>K60</scope><scope>K6~</scope><scope>L.-</scope><scope>M0C</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>Q9U</scope></search><sort><creationdate>20180801</creationdate><title>Government expenditure and economic growth in Zimbabwe</title><author>Mazorodze, Brian Tavonga</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c288t-29f7684198e69c5ae883cf9a933a0e0706632e856ea987346a18c9df4fb5d443</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2018</creationdate><topic>ARDL</topic><topic>Capital stock</topic><topic>Causality</topic><topic>Consumption</topic><topic>Econometrics</topic><topic>Economic crisis</topic><topic>Economic growth</topic><topic>Economic models</topic><topic>Expenditures</topic><topic>Fixed assets</topic><topic>GDP</topic><topic>Government consumption</topic><topic>Government spending</topic><topic>Gross Domestic Product</topic><topic>Hypotheses</topic><topic>International trade</topic><topic>Investment expenditure</topic><topic>Investments</topic><topic>Macroeconomics</topic><topic>Public sector</topic><topic>Taxes</topic><topic>Time series</topic><topic>Wages &amp; salaries</topic><topic>Zimbabwe</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Mazorodze, Brian Tavonga</creatorcontrib><collection>CrossRef</collection><collection>ProQuest Central (Corporate)</collection><collection>ABI商业信息数据库</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>ProQuest Central (Alumni)</collection><collection>ProQuest Central UK/Ireland</collection><collection>ProQuest Central</collection><collection>ProQuest Business Premium Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central</collection><collection>International Bibliography of the Social Sciences</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>International Bibliography of the Social Sciences</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ABI/INFORM Global</collection><collection>One Business (ProQuest)</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>ProQuest Central Basic</collection><jtitle>African journal of business and economic research</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Mazorodze, Brian Tavonga</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Government expenditure and economic growth in Zimbabwe</atitle><jtitle>African journal of business and economic research</jtitle><date>2018-08-01</date><risdate>2018</risdate><volume>13</volume><issue>2</issue><spage>183</spage><epage>202</epage><pages>183-202</pages><issn>1750-4554</issn><eissn>1750-4562</eissn><abstract>The International Monetary Fund’s (IMF) 2017 Article IV Consultation report on Zimbabwe’s economic update claims that unchecked government expenditure could be a hindrance to long term economic growth. Therefore, particularly on public wages, effort is required to cut general consumption in favour of investment expenditure. Testing this claim requires separating the effects of government general consumption and government investment expenditure on economic growth. Applying the ARDL, DOLS, FMOLS and CCR techniques for the period of 1979 – 2017, this paper finds a significantly positive causal effect between both expenditure components on long term economic growth in Zimbabwe. Investment expenditure has a larger effect (0.1 – 0.8%) in comparison to consumption expenditure (0.02% – 0.03%). Based on the evidence, this paper argues that the IMF’s advice of expenditure cuts to raise growth in Zimbabwe could be empirically misleading as such advice is not supported by the data analysed.</abstract><cop>London</cop><pub>Adonis &amp; Abbey Publishers</pub><doi>10.31920/1750-4562/2018/v13n2a9</doi><tpages>20</tpages></addata></record>
fulltext fulltext
identifier ISSN: 1750-4554
ispartof African journal of business and economic research, 2018-08, Vol.13 (2), p.183-202
issn 1750-4554
1750-4562
language eng
recordid cdi_proquest_journals_2119846403
source Business Source® Complete
subjects ARDL
Capital stock
Causality
Consumption
Econometrics
Economic crisis
Economic growth
Economic models
Expenditures
Fixed assets
GDP
Government consumption
Government spending
Gross Domestic Product
Hypotheses
International trade
Investment expenditure
Investments
Macroeconomics
Public sector
Taxes
Time series
Wages & salaries
Zimbabwe
title Government expenditure and economic growth in Zimbabwe
url https://sfx.bib-bvb.de/sfx_tum?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2024-12-25T08%3A31%3A32IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Government%20expenditure%20and%20economic%20growth%20in%20Zimbabwe&rft.jtitle=African%20journal%20of%20business%20and%20economic%20research&rft.au=Mazorodze,%20Brian%20Tavonga&rft.date=2018-08-01&rft.volume=13&rft.issue=2&rft.spage=183&rft.epage=202&rft.pages=183-202&rft.issn=1750-4554&rft.eissn=1750-4562&rft_id=info:doi/10.31920/1750-4562/2018/v13n2a9&rft_dat=%3Cproquest_cross%3E2119846403%3C/proquest_cross%3E%3Curl%3E%3C/url%3E&disable_directlink=true&sfx.directlink=off&sfx.report_link=0&rft_id=info:oai/&rft_pqid=2119846403&rft_id=info:pmid/&rft_sabinet_id=https://hdl.handle.net/10520/EJC-10dd1a8e87&rfr_iscdi=true