Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013

Abstract

This study analysed the interconnectedness between economic growth and imports in the short and long run in Zimbabwe from 1975 to 2013. The Zimbabwean economy generally experienced positively associated trend between Gross Domestic Product and imports over the years. For precise and effective policy formulation, it is therefore necessary to understand the nexus between the two mentioned macroeconomic variables. Based on the results of the Johansen causality method, there is a short run unidirectional link between Gross Domestic Product and imports, running from imports to Gross Domestic Product. In the long run no evidence exists for the connection between the two variables according to the Johansen co-integration tests.