Browsing by Author "Mawila, Eugene"

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    Investigating the impact of FDI on economic growth in Zambia: 1980-2012
    (2015) Mawila, Eugene; Nyambe, Jacob M.
    This study was conceived to investigate the impact of foreign direct investment on economic growth in Zambia. Data used was obtained from the World Bank’s world development indicators for the period 1980 to 2012. A unit root test was used to determine whether or not the data was stationary. The Johansen cointegration test was then used to test for cointegration. Additionally the Granger causality procedure was used to test the direction of causality between foreign direct investment and economic growth. It was revealed that all the independent variables were non-stationary in level form but were all found to be stationary after first differencing them. Further, the variables were integrated of order one, I (1) and also that there existed a long run relationship among the variables for the period 1980 to 2012. In the same manner, the results showed that FDI does not granger cause economic growth in Zambia . Therefore, unless the Government of the Republic of Zambia considers reforming its existing policies, foreign direct investments will not serve as the prelude for desired economic growth.