Author

  • Sambulo Malumisa

    • Large Business Centre, South African Revenue Service, Rivonia, South Africa
    • South Africa

Abstract

The study investigates the determinants of private investment in South Africa and Zimbabwe employing annual data over the 1980-2010 periods. The influence of gross domestic product (GDP), government debt, inflation, and interest rate policies are considered. Applied vector autoregressive and error correction models are used to estimate long- and short-run relationships among variables. The results suggest that GDP has a positive effect on private investment. Government debt has a crowding out effect on private investment, and inflation is shown to negatively affect investment. Increases in interest rates discourage private investment in South Africa

Keywords

References

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How to Cite

Malumisa, S. (2013). Comparative Analysis of the Determinants and Behaviour of Investment Demand between South Africa and Zimbabwe. Journal of Economics and Behavioral Studies, 5(6), 386-398. https://doi.org/10.22610/jebs.v5i6.413

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Section

Research Paper

Published in

Vol. 5 No. 6 (2013) Regional Disparity, Fiscal Debt & Monetary Transition View issue contents

Published

2013-06-30

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