The impact of institutions on economic growth: The case for Zimbabwe(1980 - 2013)

Abstract

This dissertation explores the role of institutions in determining the income per capita for the period 1980 -2013 in Zimbabwe. It analyzed empirically using the Generalized Method of Moments (GMM) whether the institutions (proxied by political stability index) affect economic growth alongside the traditional factors. The results show that institutional quality has a greater impact on growth in Zimbabwe and if not taken into account may crowd out all other economic policy initiatives. Therefore the policy implication from the study is that economic growth success hinges on the soundness of institutions.