Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe

dc.contributor.advisorKabinga, Mundia
dc.contributor.authorChinodzama, Delia
dc.date.accessioned2022-01-27T18:47:29Z
dc.date.available2022-01-27T18:47:29Z
dc.date.issued2021
dc.date.updated2022-01-27T18:44:19Z
dc.description.abstractThe study primarily examined the macroeconomic and institutional factors constraining the flow of foreign private investment flows into Zimbabwe's manufacturing sector. The study further explored the benefits that accrue from private capital as a source of financing for Zimbabwe's manufacturing sector. Quantitative analysis was used to determine the macroeconomic and governance factors that have a significant impact on the flow on private capital into Zimbabwe. Using the Johansen cointegration trace and maximum eingen value test indicate the presence of a significant long-run relationship between foreign capital inflows and the predictor variables. The results indicated the presence of 5 integrating equations for the trace test and 3 cointegrating equations for the maximum eingen value test. The normalized coefficients, foreign private investment flows are significantly and positively impacted by infrastructure development, economic growth rate, and inflation (macroeconomic factors) and further by business freedom and government effectiveness (governance factors). GDP per capita was found to have a negative impact on foreign investment flows. Analysis of questionnaire data revealed that foreign private financing appeals highly to manufacturing companies but access to this source of funding is constrained by funding mismatches, high credit risk levels within the local manufacturing industry, a longer time lag, sanctions imposed on the country and high production costs. In terms of the benefits of foreign private capital over the traditional sources of funding, the study found that private capital improves company operations (capacity utilisation, export market penetration and productivity), improves technology usage, and boosts the target company's corporate image.
dc.identifier.apacitationChinodzama, D. (2021). <i>Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe</i>. (). ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/35605en_ZA
dc.identifier.chicagocitationChinodzama, Delia. <i>"Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe."</i> ., ,Faculty of Commerce ,Graduate School of Business (GSB), 2021. http://hdl.handle.net/11427/35605en_ZA
dc.identifier.citationChinodzama, D. 2021. Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe. . ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/35605en_ZA
dc.identifier.ris TY - Master Thesis AU - Chinodzama, Delia AB - The study primarily examined the macroeconomic and institutional factors constraining the flow of foreign private investment flows into Zimbabwe's manufacturing sector. The study further explored the benefits that accrue from private capital as a source of financing for Zimbabwe's manufacturing sector. Quantitative analysis was used to determine the macroeconomic and governance factors that have a significant impact on the flow on private capital into Zimbabwe. Using the Johansen cointegration trace and maximum eingen value test indicate the presence of a significant long-run relationship between foreign capital inflows and the predictor variables. The results indicated the presence of 5 integrating equations for the trace test and 3 cointegrating equations for the maximum eingen value test. The normalized coefficients, foreign private investment flows are significantly and positively impacted by infrastructure development, economic growth rate, and inflation (macroeconomic factors) and further by business freedom and government effectiveness (governance factors). GDP per capita was found to have a negative impact on foreign investment flows. Analysis of questionnaire data revealed that foreign private financing appeals highly to manufacturing companies but access to this source of funding is constrained by funding mismatches, high credit risk levels within the local manufacturing industry, a longer time lag, sanctions imposed on the country and high production costs. In terms of the benefits of foreign private capital over the traditional sources of funding, the study found that private capital improves company operations (capacity utilisation, export market penetration and productivity), improves technology usage, and boosts the target company's corporate image. DA - 2021 DB - OpenUCT DP - University of Cape Town KW - business LK - https://open.uct.ac.za PY - 2021 T1 - Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe TI - Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe UR - http://hdl.handle.net/11427/35605 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/35605
dc.identifier.vancouvercitationChinodzama D. Foreign Private Investment Flows and Manufacturing Sector in Zimbabwe. []. ,Faculty of Commerce ,Graduate School of Business (GSB), 2021 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/35605en_ZA
dc.language.rfc3066eng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.subjectbusiness
dc.titleForeign Private Investment Flows and Manufacturing Sector in Zimbabwe
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationlevelMBA
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