Causality between Economic Growth and Investment in Zimbabwe

Abstract

The paper aimed at investigating the causal relationship between investment and economic growth in Zimbabwe using Granger causality methodology. Results revealed that causality does not run in any direction and hence the two are independent. These results are not the only one in literature since they are in line with others such as Verman and Wilson (2005) but are contrary to those of Samake (2008). It is recommended that Zimbabwe should invest in modern day technology to improve its growth.

Key words: Economic growth, investment, causality, Zimbabwe