The Impact of Load Shedding on The Cost of Living: A Zambian Perspective

In this paper, we assess the impact of Zambia Electricity Supply Corporationrsquos (ZESCO) power rationing (load shedding) on the cost of living of the Zambian people. We also assess whether the businesses and households have capacity to resort to alternative sources of energy in the time of crisis. Our results show that, although the rationing does not last for 24 hours in most places, the duration that businesses and households stay out of power is long enough to impact negatively on the livelihoods of the Zambian people and consequently itrsquos Economy. nbs

An Empirical Analysis of The Determinants of Economic Growth In Zambia: 1973-2013

In this paper, we assess the key determinants of economic growth in Zambia between 1973 and 2013. In this view, a model is developed to assess investment, infrastructure development, economic diversification, and human development. Following the endogenous growth theories which postulate that policies play a substantial role in advancing growth on a long-run basis, we make use of exploratory data analysis techniques, multiple regression analysis and statistical tests to model economic growth as a function of foreign direct investment, construction, exports of goods and services and gross national income per capita power parity. We find that the real domestic product increased four times per unit increase in foreign direct investment, and the gross national income has a one-to-one correspondence with economic growth

Macro-Economic Variables Determining Stochastic Volatility of The Zambian Currency

In this paper, we assess the macro-economic determinants of the stochastic volatility of the Zambian currency over time. The research was motivated by the debates revolving around the depreciation of the Zambian currency against major foreign currencies, which are mainly characterized by a lack of empirical analysis and evidence of the factors influencing the volatility of the currency. We determine the correlation between the Zambian foreign currency exchange rate and the macro-economic variables including inflation, interest rate, foreign direct investment and external debt and forecast the volatility of the Zambian currency based on the historical data. Our results show a statistically significant relationship between the exchange rate of the Zambian currency and the macro-economic indicators at a 95 percent level of confidence. In this respect, the Zambian foreign currency exchange rate is found to be highly sensitive to external debt and foreign direct investment net inflows