Muyambiri, Brian and Chiwira, Oscar and Enowbi Batuo, Michael and Chiranga, Ngonidzashe (2010): The Causal Relationship between Private and Public Investment in Zimbabwe.
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The study examines the relationship between private and public investment in Zimbabwe utilizing yearly time series data for the period 1970 to 2007. Emphasis is placed on the direction of causality and the effect of the two types of investment on each other. The paper constructs empirical models for both private and public investment, based on the flexible accelerator theory. Private investment is found to be cointegrated with public investment. A cointergration approach and VEC model are employed to assess the short run relationship existing between public and private investment. The relationship between private and public investment is found to be insignificant and the direction of causality found to be unidirectional. The results support the notion that private investment precedes public investment.
|Item Type:||MPRA Paper|
|Original Title:||The Causal Relationship between Private and Public Investment in Zimbabwe|
|English Title:||The Causal Relationship between Private and Public Investment in Zimbabwe|
|Keywords:||Private Investment, Public Investment, Causality, Flexible Accelerator Theory, Zimbabwe|
|Subjects:||H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock
O - Economic Development, Innovation, Technological Change, and Growth > O2 - Development Planning and Policy > O23 - Fiscal and Monetary Policy in Development
E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity
O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O16 - Financial Markets ; Saving and Capital Investment ; Corporate Finance and Governance
|Depositing User:||Michael Enowbi Batuo|
|Date Deposited:||15. Feb 2012 15:54|
|Last Modified:||12. Feb 2013 16:39|
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