Skip to main content
SpringerLink
Log in

Trade Liberalization and Investment Response in Zimbabwe

  • Chapter
Macroeconomic and Structural Adjustment Policies in Zimbabwe

Part of the book series: International Political Economy Series ((IPES))

  • 85 Accesses

Abstract

On the basis of liberalization experiences in many countries, there has been an increasing concern about the investment response to a process of liberalization, as summarized in, for example, Serven and Solimano (1993). Since the main reason governments embark on trade liberalization programs is to increase the productive capacity of the economy over time, a shortage of investment may prevent the expected favorable growth outcome.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 84.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Hardcover Book
USD 109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Bates, R.H. and P. Collier (1995) ‘The politics and economics of policy reform in Zambia’, Journal of African Economies, vol. 4, no. 1, pp. 115–43.

    Google Scholar 

  • Benjamin, N. (1992) ‘What happens to investment under structural adjustment: results from a simulation model’, World Development, vol. 20, no. 9, pp. 1335–44.

    Article  Google Scholar 

  • Bevan, D., P. Collier and J.W. Gunning (1990) Controlled Open Economies: a Neoclassical Approach to Structuralism. Oxford: Clarendon Press.

    Google Scholar 

  • Buffie, E. (1984) ‘The macroeconomics of trade liberalization’, Journal of Development Economics, vol. 17, pp. 121–37.

    Google Scholar 

  • Chhibber, A., J. Cottani, R. Firuzabadi and M. Walton (1989) ‘Inflation, price controls, and fiscal adjustment in Zimbabwe’, Working Paper 192, Country Economics Department, The World Bank.

    Google Scholar 

  • Collier, P. (1992) ‘Trade , Price and Financial Reforms in the transition from African socialism’, mimeo, Oxford University.

    Google Scholar 

  • Collier, P. and J.W. Gunning (1992) ‘Aid and exchange rate adjustment in African trade liberalisations’, Economic Journal, vol. 102, pp. 925–39.

    Article  Google Scholar 

  • Collier, P. and J.W. Gunning (1996) ‘Trade liberalisation and the composition of investment: theory and African application’, Working Paper 96:4, CSAE, Oxford University.

    Google Scholar 

  • Condon, T., S. Robinson and S. Urata (1985) ‘Coping with a foreign exchange crisis: a general equilibrium model of alternative adjustment mechanism’, in A. Manne (ed.), Economic Equilibrium: Model Formulation and Solution. Amsterdam: North-Holland.

    Google Scholar 

  • Cripps, F. and W. Godley (1978) ‘Control of imports as a means to full employment and the expansion of world trade: the UK’s case’, Cambridge Journal of Economics, vol. 2, pp. 327–34.

    Google Scholar 

  • Dailami, M. and M. Walton (1989) ‘Private investment, government policy, and foreign capital in Zimbabwe’, Working Paper 248, Country Economics Department, The World Bank.

    Google Scholar 

  • Davies, R. (1991) ‘Trade, trade management and development in Zimbabwe’, in J. Frimpong-Ansah, S.M.R. Kanbur and P. Svedberg (eds), Trade and Development in Sub-Saharan Africa. Manchester: Manchester University Press.

    Google Scholar 

  • Davies, R., J. Rattsø and R. Torvik (1994) ‘The macroeconomics of Zimbabwe in the 1980s: a CGE-model analysis’, Journal of African Economies, vol. 3, no. 2, pp. 1–46.

    Google Scholar 

  • Davies, R., J. Rattsø and R. Torvik (1998) ‘Short run consequences of trade liberalization: a CGE model of Zimbabwe’, Journal of Policy Modeling, vol. 20, pp. 305–33.

    Article  Google Scholar 

  • de Melo, J. and S. Robinson (1989) ‘Product differentiation and the treatment of foreign trade in computable general equilibrium models of small economies’, Journal of International Economics, vol. 27, pp. 47–67.

    Article  Google Scholar 

  • Devarajan, S., J.D. Lewis and S. Robinson (1991) ‘External shocks, purchasing power parity, and the equilibrium real exchange rate’, Working Paper No. 611, Department of Agricultural and Resource Economics, University of California at Berkeley.

    Google Scholar 

  • Dixit, A. (1989) Tntersectoral capital reallocation under price uncertainty’, Journal of International Economics, vol. 26, pp. 309–25.

    Article  Google Scholar 

  • Dornbusch, R. (1990) ‘Policies to move from stabilization to growth’, World Bank Conference on Development Economics; Proceedings 1990, pp. 19–48.

    Book  Google Scholar 

  • Gibson, B. (1985) ‘A structuralist macromodel for post-revolutionary Nicaragua’, Cambridgejournal of Economics, vol. 9, pp. 347–69.

    Google Scholar 

  • Government of Zimbabwe (1991) Zimbabwe: a Framework for Economic Reform 1991–95. Harare: Government Printer.

    Google Scholar 

  • Grais, W., J. de Melo and S. Urata (1986) ‘A general equilibrium estimation of the effects of reductions in tariffs and quantitative restrictions in Turkey in 1978’, in T.N. Srinivasan and J. Whalley (eds), General Equüibrium Trade Policy Modeling. Cambridge, MA: MIT Press.

    Google Scholar 

  • Green, R. and X. Kadhani (1986) ‘Zimbabwe: transition to economic crises 1981–1983. Retrospect and prospect’, World Development, vol. 14, no. 8, pp. 1059–83.

    Article  Google Scholar 

  • Gunning, J.W. (1996) ‘The trade policy review of Zimbabwe’, World Economy, pp. 157–66.

    Google Scholar 

  • Jenkins, C. (1998) ‘Determinants of private investments in Zimbabwe’, Journal of African Economies, vol. 7, no. 1, pp. 34–61.

    Article  Google Scholar 

  • Keynes, J.M. (1936) The General Theory of Employment, Interest and Money. London: Macmillan.

    Google Scholar 

  • Krugman, P. and L. Taylor (1978) ‘Contractionary effects of devaluation’, Journal of International Economics, vol. 8, no. 3, August, pp. 445–56.

    Article  Google Scholar 

  • Mehlum, H. and J. Rattsø (1995) ‘Import compression and growth constraints in Zimbabwe’, mimeo, Department of Economics, University of Trondheim.

    Google Scholar 

  • Mehlum, H. (1999) ‘The political economy of failing reforms’, PhD thesis, Department of Economics, University of Oslo.

    Google Scholar 

  • Morande, F. and Schmidt-Hebbel, K. (1991) ‘Macroeconomics of public sector deficits: The case of Zimbabwe’, Working Paper 688, Country Economics Department, The World Bank.

    Google Scholar 

  • Neary, J.P. and K.W.S. Roberts (1980) ‘The theory of household behavior under rationing’, European Economic Review, vol. 13, pp. 25–42.

    Article  Google Scholar 

  • Ocampo, J.A. (1987) ‘The macroeconomic effect of import controls: a Keynesian analysis’, Journal of Development Economics, vol. 27, pp. 285–305

    Article  Google Scholar 

  • Pakkiri, L. and Moyo, N.P. (1986) ‘Foreign exchange policies: the case of Zimbabwe’, paper presented at IDRC Workshop on Economic Structure and Macroeconomic Management;, Harare.

    Google Scholar 

  • Rattsø, J. (1994a) ‘Medium run adjustment under import compression: Macroeconomic analysis relevant for Sub-Saharan Africa’, Journal of Development Economics, vol. 45, pp. 35–54.

    Article  Google Scholar 

  • Rattsø, J. (1994b) ‘Devaluation and monetary policy with import compression’, Open Economies Review, vol. 5, pp. 159–75.

    Article  Google Scholar 

  • Rattsø, J. and R. Torvik (1998a) ‘Zimbabwean trade liberalization: ex post evaluation’, Cambridge Journal of Economics, vol. 22, pp. 325–46.

    Article  Google Scholar 

  • Rattsø, J. and R. Torvik (1998b) ‘Dynamic interactions between agriculture and industry: theoretical analysis of the consequences of discriminating agriculture in sub-Saharan Africa’, mimeo, Department of Economics, Norwegian University of Science and Technology.

    Google Scholar 

  • Robinson, J.V. (1962) Essays in the Theory of Economic Growth. London: Macmillan.

    Book  Google Scholar 

  • Rodrik, D. (1991) ‘Policy uncertainty and private investment in developing countries’, Journal of Development Economics, vol. 36, pp. 229–42.

    Article  Google Scholar 

  • Rodrik, D. (1992) ‘The limits of trade policy reform in developing countries’, Journal of Economic Perspectives, vol. 6, no. 1, pp. 87–105.

    Article  Google Scholar 

  • Rosensweig, A. and L. Taylor (1990) ‘Devaluation, capital flows, and crowding-out: a CGE Model with portfolio choice for Thailand’, in Lance Taylor (ed.), Socially Relevant Policy Analysis. Boston, MA: MIT Press.

    Google Scholar 

  • Sen, A. (1967) ‘Isolation, assurance and the social rate of discount’, Quarterly Journal of Economics, vol. 80, pp. 112–24.

    Article  Google Scholar 

  • Serven, L. and A. Solimano (eds) (1993) Striving for Growth after Adjustment: the Role of Capital Formation. Washington DC: World Bank.

    Google Scholar 

  • Skålnes, T. (1995) The Politics of Economie Reform in Zimbabwe. London: Macmillan – now Palgrave.

    Book  Google Scholar 

  • Taylor, Lance (1991) Income Distribution, Inflation and Growth: Lectures on Structuralist Macroeconomic Theory. Cambridge, MA and London: MIT Press.

    Google Scholar 

  • Taylor, Lance (1983) Structuralist Macroeconomics. New York: Basic Books.

    Google Scholar 

  • Torvik, R. (1994) ‘Trade policy under a binding foreign exchange constraint’, Journal of International Trade and Economic Development, vol. 3, pp. 15–31.

    Article  Google Scholar 

  • Torvik, R. (1997a) ‘Real exchange rate dynamics and trade liberalization: the case of multiple tariffs and unemployment’, Journal of International Trade and Economic Development, vol. 6, pp. 329–44.

    Article  Google Scholar 

  • Torvik, R. (1997b) ‘Agricultural supply led industrialization: a macromodel with Sub-Saharan Africa characteristics’, Structural Change and Economic Dynamics, vol. 8, pp. 351–70.

    Article  Google Scholar 

  • van Wijnbergen, S. (1992) ‘Intertemporal speculation, shortages and the political economy of price reform’, The Economic Journal, vol. 102, pp. 1395–1406.

    Article  Google Scholar 

  • Williamson, J. (ed.) (1994) The Political Economy of Policy Reform. Washington DC: Institute for International Economics.

    Google Scholar 

Download references

Authors
  1. Halvor Mehlum
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Jørn Rattsø
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Ragnar Torvik
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Department of Economics, University of Zimbabwe, Zimbabwe

    Clever Mumbengegwi (Dean of the Faculty of Social Studies and Senior Lecturer) (Dean of the Faculty of Social Studies and Senior Lecturer)

Copyright information

© 2002 Palgrave Macmillan, a division of Macmillan Publishers Limited

About this chapter

Cite this chapter

Mehlum, H., Rattsø, J., Torvik, R. (2002). Trade Liberalization and Investment Response in Zimbabwe. In: Mumbengegwi, C. (eds) Macroeconomic and Structural Adjustment Policies in Zimbabwe. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230391048_10

Download citation

Publish with us

Policies and ethics

Search

Navigation