International capital flows and economic growth for Mozambique (1980-1996).
Date
1999
Authors
Jamo, Gabriel
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Abstract
The purpose of this study was to assess the effect of international capital flows on
economic growth and employment in Mozambique, a country that is heavily
dependent on foreign assistance. The aggregate expenditure sector was employed to
develop a model that is consistent with specific features of the Mozambican economy.
Annual aggregate time series data from 1980 to 1996 period was primarily used to
estimate of single equations which are components of the model, employing modem
time series techniques. The sample size is rather small to generate anything other than
tentative conclusions. Nevertheless, foreign capital flows appear to have had a far-reaching
effect in fuelling economic growth in Mozambique for the period studied.
The effects were largely dependent upon the magnitude of international capital flows.
However, there was a significant lag between economic growth and employment
generation. Due to high level of aggregation applied in the analysis, the impact of
foreign resources at a sectoral impact was not captured. In particular a more
desegregated analysis is required to discern the effect of intemational capital flaws on
economic growth and employment.
Description
A research report submitted to the Graduate School of Public and Development
Management, University of the Witwatersrand, Johannesburg, in partial fulfillment of
the requirements for the degree of Master of Management (in the field of Public and
Development Management).
Keywords
Economic assistance -- Mozambique., Mozambique -- Economic conditions -- 1975-, Mozambique -- Economic policy.