The Causal Relationship between Private and Public Investment in Zimbabwe

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.Private Investment, Public Investment, Causality, Flexible Accelerator Theory, Zimbabwe

Unbiased Technique in Identifying Appropriate Variables for FDI Inflows Model: A Role of Economic Growth in SADC

This paper recommends an unbiased technique in choosing appropriate variables for FDI inflows in SADC member states by using a modified TYDL causality test. The results have proven 100% accuracy with this technique by identifying economic growth, domestic investment, government size, import openness, balance of payment and dummy for SADC integration as significant factors that influence FDI inflows in SADC. In addition, all the diagnostic tests are conducted to ensure that this approach is not biased. Furthermore, economic growth, domestic investment, government size, import openness and dummy for SADC integration have positive significant effect on FDI inflows in SADC while balance of payment has a negative significant effect on FDI inflows in SADC. This paper recommends that researchers should understand difference in countries and regions as they consider variables in their modelling. The negligence of this differences result to policies contradictions and hence lend to policy makers adopting a discretionary policy. This type of policy in a long-run may distorts the intended goals and thereby making the economy of the country(s) potentially worst off in the long-run

The Cashless Economy in Zimbabwe: The Golden Time to Tax the Informal Sector

In this paper we sought to analyse the possibilities of raising revenue from the informal sector in the cashless/ plastic money era in Zimbabwe. The study employed literature review method.  The evidence suggests that the informal sector play an important role in the Zimbabwean economy such as creating jobs, poverty eradication and also as a test bed from which willing taxpayers can graduate into mainstream however their contribution to the national tax revenue is insignificant despite Government efforts. We established that it is possible to increase tax compliance in this cashless era and formalise the informal sector activities.  The study recommends that Zimbabwe Revenue Authority must follow the proposed outlined phases to accomplish the goal of increasing revenue from the informal sector. Keywords: Informal sector, Tax, Cashless Economy, Zimbabw

Managing Road Traffic Accidents Using a Systems Approach: Case of Botswana - Empirical Review.

Road traffic accidents are a menace to human deaths and a single life lost on Botswana roads is one too many. The road traffic injuries have long been considered to be inevitable and caused by random, unpredictable events; documented success stories in road safety are needed to demonstrate that road traffic accidents need not be inevitable and unpredictable, but are avoidable. The systems approach to road traffic accidents (RTAs) acknowledges that there are three factors that contribute to road accidents and these are; road users, vehicles and road system. Specifically, the C-3 systems approach with three phases (creation, cultivation, and conduct) was adopted as a theoretical framework underpinning the study. The major findings from this study indicates that most RTAs are caused by road users through speeding, unlicensed driving, using cell phones whilst driving, alcohol and drug abuse, bad state of mind and healthy, non-use of safety belts and deliberate failure to observe road regulations amongst others. The findings also indicate that mechanically faulty vehicles, unmaintained vehicles, old vehicles, and tyre blowouts are vehicle related factors causing RTAs. Road system conditions involve potholes, stray livestock and road design attributes amongst others. The study employed the desktop research approach. The study came up with a number of recommendations which are important to reduce RTAs and these include educating the public on safe driving habits at both basic education and tertiary education levels as well as punitive policies on road users breaking road traffic laws and regulations has been identified as another recommendation. Stringent measures must be taken against livestock owners who leave stock straying in highways and public roads. In addition, regular road maintenance and vehicle maintenance were found to be of paramount importance in reducing RTAs in Botswana. Key words: Road traffic accident, Casualty, Traffic safety, Botswana, Drunken driving, Systems approach DOI: 10.7176/JESD/11-10-21 Publication date:May 31st 202

The Causal Relationship between Private and Public Investment in Zimbabwe

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

The Causal Relationship between Private and Public Investment in Zimbabwe

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

Low Taxpayer Compliance in Zimbabwe: Role of Balance Scorecard on the Performance of ZIMRA

The innovation and introduction of the balanced scorecard as a strategy performance management tool was a response to the ever changing and volatile business environment and the failure of older frameworks to keep pace with such changes. For firms to survive, research has proven that they need embrace change to sustain their strategic capabilities; change which may prescribe the need to drift from traditional performance management approaches and embrace modern techniques. This paper adopted a desk and library research approach. Data was collected through review of published articles, official reports from ZIMRA, Newspaper articles and the internet. The findings of the study show that ZIMRA are experiencing compliance problems in collection of tax. To improve on the compliance levels, this paper strongly recommends that ZIMRA should involve stakeholders (taxpayers, academics, parliamentarians, business community) in its policy formulation and setting of yearly targets. Keywords: Balanced scorecard, ZIMRA, tax Compliance, performance measurement

Examining the co-integrating relationship between financial development and economic growth

This study investigated the nexus between financial development and economic growth, exploring the short-run and long-run impact of financial development on economic growth in the Sothern African Development Community (SADC). The SADC was fragmented into middle-income countries and low-income countries so as to ascertain the income effect on the nature of the relationship, an exploration not considered by previous studies. The study used panel data covering the period 1980 to 2020. It employed the Autoregressive Distributed Lag (ARDL) Bounds and the Toda and Yamamoto and Dolado and Lütkepohl (TYDL) models to examine the relationship and the direction of causality respectively. In the short run, financial development, through domestic credit to the private sector, spurs economic growth and in the long run financial development focus should be on promoting bank deposits. Causality tests between economic growth and financial development tests showed mixed results depending on the variable used for measuring financial development. In addition, the SADC countries are encouraged to strengthen their financial sector legislation, strategies, and banking system supervision so as to enhance the financial sector efficiency as well as to realise the benefits of financial innovation

Examining the co-integrating relationship between financial development and economic growth

This study investigated the nexus between financial development and economic growth, exploring the short-run and long-run impact of financial development on economic growth in the Sothern African Development Community (SADC). The SADC was fragmented into middle-income countries and low-income countries so as to ascertain the income effect on the nature of the relationship, an exploration not considered by previous studies. The study used panel data covering the period 1980 to 2020. It employed the Autoregressive Distributed Lag (ARDL) Bounds and the Toda and Yamamoto and Dolado and Lütkepohl (TYDL) models to examine the relationship and the direction of causality respectively. In the short run, financial development, through domestic credit to the private sector, spurs economic growth and in the long run financial development focus should be on promoting bank deposits. Causality tests between economic growth and financial development tests showed mixed results depending on the variable used for measuring financial development. In addition, the SADC countries are encouraged to strengthen their financial sector legislation, strategies, and banking system supervision so as to enhance the financial sector efficiency as well as to realise the benefits of financial innovation

Exports and economic growth: relationships and threshold analysis for the Southern Africa customs union

This study examines the short-run and long-run relationships between exports and economic growth in the Sothern Africa Customs Union (SACU), as well as the corresponding threshold level. The study used panel data covering the period 1980 to 2021 and employed the Autoregressive Distributed Lag (ARDL) Bounds to test for co-integration relationships, and the Generalized Least Squares (GLS) to determine the respective threshold level.  Exports positively support economic growth both in the short-run and in the long-run in SACU. There is long-run bidirectional causality between exports and economic growth. The minimum threshold for exports is 59%. That is, exports only start contributing significantly to economic growth when they are above 59% of the Gross Domestic Product (GDP). SACU should put in place economic policies and regulations that are skewed towards the improvement of the competitiveness of its local products on the global market and also strategically consider export-oriented industrialization strategies. Efforts should also be channeled towards the implementation of bilateral and multilateral trade agreements and harnessing the synergic benefits through the adoption of deliberate value chain mechanisms and initiatives