Published 2024-01-30
Keywords
- Export Diversification,
- GDP Growth,
- Economic Development,
- Balance of Payments,
- Zimbabwe
How to Cite
Copyright (c) 2024 Top Academic Journal of Economics and Statistics
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Abstract
The link between robust export performance and accelerated gross domestic product (GDP) growth, as well as improved living standards, has been a recurrent theme in economic literature (Lewer and Van den Berg, 2003). The argument posits that nations actively engaged in the international division of labor and equipped with the latest technologies experience heightened productivity, contributing to success in the global export markets (Anderson et al., 2008). In pursuit of these benefits, many developing nations, including Zimbabwe, have embraced the export diversification strategy to cultivate their productive sectors and generate value-added products.
This study delves into the implications of Zimbabwe's export diversification strategy, with a focus on its impact on GDP growth, export earnings stability, balance of payments, and socio-economic development objectives. The multifaceted objectives encompass high GDP growth rates, stable export earnings, a favorable balance of payments position, job creation, income redistribution, and the development of new skills and infrastructure (Al-Marhubi, 2000; Meilak, 2008; Loayza et al., 2007; World Bank, 1999; Ghosh and Ostry, 1994; Bleaney and Greenaway, 2001).
As one of the key exporters in the Southern African Development Community (SADC) region, Zimbabwe's GDP stands at approximately US$20 billion, according to the Zimbabwe Statistics Agency (Zimstat). Notably, the Ministry of Finance and Economic Development (MFED) reported a fluctuating trend in exports, increasing from 20.3 percent of GDP in 2017 to 36 percent in 2019, and subsequently declining to 27.2 percent in 2020.
This research seeks to unravel the dynamics underlying Zimbabwe's export performance and its implications for the broader economic landscape. By critically examining the trends in export contributions to GDP and exploring the associated socio-economic outcomes, the study aims to contribute nuanced insights to the ongoing discourse on export diversification strategies in developing nations.
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