The Influence of Zimbabwe’s Export Profile on Foreign Investors Seeking FDI Opportunities in Post-crisis Zimbabwe
The Foreign Direct Investment-Exports nexus has been widely researched, however despite evidence of the bi-directional relationship, little is known about the reverse Exports-Foreign Direct Investment relationship. Thus, the study intended to examine the influence of Zimbabwe’s Exports profile on...
Main Authors: | , |
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Format: | Article |
Language: | English |
Published: |
Danubius University
2018-11-01
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Series: | Acta Universitatis Danubius: Oeconomica |
Subjects: | |
Online Access: | http://journals.univ-danubius.ro/index.php/oeconomica/article/view/4959/4685 |
Summary: | The Foreign Direct Investment-Exports nexus has been widely researched, however despite
evidence of the bi-directional relationship, little is known about the reverse Exports-Foreign Direct
Investment relationship. Thus, the study intended to examine the influence of Zimbabwe’s Exports
profile on the FDI decisions of foreign investors. The study set out to identify the export factors
constituting Zimbabwe’s Exports profile and then test the relationship between Zimbabwe’s Exports
profile and the four foreign direct investment market opportunity types. STATISTICA 2016 was
utilised to apply Exploratory Factor Analysis, Principal Component Analysis and Multiple Regression
to analyse the quantitative data generated from a purposive sample of n=305 foreign investors. Factors
such as the existing global demand for Zimbabwe’s export products, and the export processing zone
status allocation to foreign manufacturers in Zimbabwe were found to be some of the more influential
factors to foreign direct investment market entry motives. Importantly, the results indicate discernible
statistically significant relationships between Zimbabwe’s Exports profile and market-, resource-,
efficiency-, and strategic asset-seeking market opportunities. Thus, this study is novel, providing
valuable insights into the Exports profile-Foreign Direct Investment nexus – significantly contributing
to the extent of the literature within the foreign direct investment and behavioural economic discourses. |
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ISSN: | 2065-0175 2067-340X |