A cointegration approach to analysis of domestic debt sustainability in Zimbabwe
A cointergration approach is applied to assess the sustainability of Zimbabwe's domestic debt stock over the period 1980 to 2007. This is done by examining the time series properties of the public expenditure, public revenue and budget deficit variables. Utilizing data for the period 1980-2007...
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| Format: | Article |
| Language: | English |
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African Integration Review
2016
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| Online Access: | http://hdl.handle.net/11408/1418 |
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| author | Chikoko, Laurine Mupunga, Nebson |
| author_facet | Chikoko, Laurine Mupunga, Nebson |
| author_sort | Chikoko, Laurine |
| collection | DSpace |
| description | A cointergration approach is applied to assess the sustainability of Zimbabwe's domestic debt stock over the period 1980 to 2007. This is done by examining the time series properties of the public expenditure, public revenue and budget deficit variables. Utilizing data for the period 1980-2007 and allowing for a structural break in 2001, the results from time series analysis reveal that public expenditure and public revenue are 1(1) and not cointegrated As a result, Zimbabwe's domestic debt was considered unsustainable. The immediate policy implication is, therefore, the need to ensure a robust economic growth over the next five years to broaden the tax base. Government expenditure can not be reduced since it is currently
at precarious levels, with uncompetitive civil service wages compared to regional and international standards. |
| format | Article |
| id | ir-11408-1418 |
| institution | My University |
| language | English |
| publishDate | 2016 |
| publisher | African Integration Review |
| record_format | dspace |
| spelling | ir-11408-14182022-06-27T13:49:06Z A cointegration approach to analysis of domestic debt sustainability in Zimbabwe Chikoko, Laurine Mupunga, Nebson Cointergration approach, domestic debt stock, Zimbabwe A cointergration approach is applied to assess the sustainability of Zimbabwe's domestic debt stock over the period 1980 to 2007. This is done by examining the time series properties of the public expenditure, public revenue and budget deficit variables. Utilizing data for the period 1980-2007 and allowing for a structural break in 2001, the results from time series analysis reveal that public expenditure and public revenue are 1(1) and not cointegrated As a result, Zimbabwe's domestic debt was considered unsustainable. The immediate policy implication is, therefore, the need to ensure a robust economic growth over the next five years to broaden the tax base. Government expenditure can not be reduced since it is currently at precarious levels, with uncompetitive civil service wages compared to regional and international standards. 2016-05-19T14:05:54Z 2016-05-19T14:05:54Z 2012 Article http://hdl.handle.net/11408/1418 en African Integration Review;Vol. 5, No. 2; p. 1-25 open African Integration Review |
| spellingShingle | Cointergration approach, domestic debt stock, Zimbabwe Chikoko, Laurine Mupunga, Nebson A cointegration approach to analysis of domestic debt sustainability in Zimbabwe |
| title | A cointegration approach to analysis of domestic debt sustainability in Zimbabwe |
| title_full | A cointegration approach to analysis of domestic debt sustainability in Zimbabwe |
| title_fullStr | A cointegration approach to analysis of domestic debt sustainability in Zimbabwe |
| title_full_unstemmed | A cointegration approach to analysis of domestic debt sustainability in Zimbabwe |
| title_short | A cointegration approach to analysis of domestic debt sustainability in Zimbabwe |
| title_sort | cointegration approach to analysis of domestic debt sustainability in zimbabwe |
| topic | Cointergration approach, domestic debt stock, Zimbabwe |
| url | http://hdl.handle.net/11408/1418 |
| work_keys_str_mv | AT chikokolaurine acointegrationapproachtoanalysisofdomesticdebtsustainabilityinzimbabwe AT mupunganebson acointegrationapproachtoanalysisofdomesticdebtsustainabilityinzimbabwe AT chikokolaurine cointegrationapproachtoanalysisofdomesticdebtsustainabilityinzimbabwe AT mupunganebson cointegrationapproachtoanalysisofdomesticdebtsustainabilityinzimbabwe |