Key Risk Factors Influencing Foreign Direct Investment (FDI) in Zimbabwe’s Agricultural Sector
DOI:
https://doi.org/10.54097/w9qbyd40Keywords:
FDI in Agriculture, key risk factors, Zimbabwe.Abstract
This study explores the key risk factors influencing foreign direct investment (FDI) in Zimbabwe’s agricultural sector. As a fundamental component of Zimbabwe’s economy, agriculture encounters numerous challenges that restrict FDI inflows. The research examines ten critical factors: crop production, climate change, consumer prices, government efficiency, exchange rate fluctuations, fertilizer supply by type and nutrient content, land utilization, GDP deflators, and pesticide use. These elements are analyzed within broader themes, including land ownership and tenure security, political stability, economic volatility and currency issues, infrastructure limitations, legal and regulatory conditions, social and cultural dynamics, and environmental factors. By assessing how these risks either deter or attract FDI, the study offers valuable insights for policymakers, investors, and stakeholders to mitigate challenges and foster a conducive environment for sustainable investment in Zimbabwe’s agriculture.
Downloads
References
[1] Ball, D. A., & McCulloch, W. H. (1999). Glossary. International Business: The challenge of global competition (7th ed.). The McGraw-Hill Companies
[2] Bauerle Danzman, S. and Meunier, S., 2023. Mapping the characteristics of foreign investment screening mechanisms: the new PRISM dataset. International Studies Quarterly, 67(2), p.sqad026.
[3] Botrić, V., & Škuflić, L. (2006). Main Determinants of Foreign Direct Investment in the Southeast European Countries. Transition Studies Review, 13(2), 359–377.
[4] Buckley, P.J. and Liesch, P.W., 2023. Externalities in global value chains: Firm solutions for regulation challenges. Global Strategy Journal, 13(2), pp.420-439.
[5] Chinyanganya, K. and Sunge, R., 2021. Growth Effects of Foreign Direct Investments in Zimbabwe: Do Sources Matter?.
[6] Contractor, F.J., Dangol, R., Nuruzzaman, N. and Raghunath, S., 2020. How do country regulations and business environment impact foreign direct investment (FDI) inflows?. International Business Review, 29(2), p.101640.
[7] Contractor, F.J., Nuruzzaman, N., Dangol, R. and Raghunath, S., 2021. How FDI inflows to emerging markets are influenced by country regulatory factors: An exploratory study. Journal of International Management, 27(1), p.100834.
[8] Creswell, J.W. and Poth, C.N., 2016. Qualitative inquiry and research design: Choosing among five approaches. Sage publications.
[9] Deininger, K. and Byerlee, D., 2011. Rising global interest in farmland: Can it yield sustainable and equitable benefits?. World Bank Publications.
[10] Deininger, K. and Byerlee, D., 2011. The rise of large farms in land abundant countries: Do they have a future?. World Bank Policy Research Working Paper, (5588).
[11] Farrell, R. (2008). Japanese Investment in the World Economy: A Study of Strategic Themes in the Internationalisation of Japanese Industry. britain: Edward Elgar.
[12] Griffin, R. W., & Pustay, M. W. (2007). International Business: A Managerial Perspective (5th ed.). New Jersey: Pearson/Prentice Hall.
[13] In M. Chikandiwa & A. Chikerema (Eds.), Zimbabwe: Agriculture, natural resources management, climate change and social dynamics (pp. 11-28). Springer.
[14] Jing, Z. and Wang, J., 2020. Sustainable development evaluation of the society–economy–environment in a resource-based city of China: A complex network approach. Journal of cleaner production, 263, p.121510.
[15] Jungmittag, A. and Marschinski, R., 2023. Service trade restrictiveness and foreign direct investment—Evidence from greenfield FDI in business services. The World Economy, 46(6), pp.1711-1758.
[16] Kellard, N.M., Kontonikas, A., Lamla, M.J., Maiani, S. and Wood, G., 2022. Risk, financial stability and FDI. Journal of International Money and Finance, 120, p.102232.
[17] Mariotti S., Mutinelli M., Piscitello L. (2003) “Home country employment and foreign direct investment: evidence from the Italian case”, Cambridge Journal of Economics, 27; 419-431.
[18] Matondi, P.B., 2013. Scope for empowering women through entrepreneurial development in the Fresh Fruit and Vegetable (FFV) Sector in Zimbabwe. IDRC.
[19] Moyo, S. (2017). Foreign direct investment and agriculture in Zimbabwe
[20] Ndlovu-Gatsheni, S.J. and Ruhanya, P., 2020. The history and political transition of Zimbabwe. Springer International Publishing.
[21] Ndlovu-Gatsheni, S.J. ed., 2015. Mugabeism?: History, politics, and power in Zimbabwe. Springer.
[22] Newman, D.A., 2014. Missing data: Five practical guidelines. Organizational Research Methods, 17(4), pp.372-411.
[23] Rahman, A., 2015. Impact of foreign direct investment on economic growth: Empirical evidence from Bangladesh. International Journal of Economics and Finance, 7(2), pp.178-185.
[24] Sisodiya, P.S. and Bhandari, V., Dynamic Resource Allocation in Industrial Internet of Things (IIoT) using Machine Learning Approaches.
[25] Wang, Y., Guo, J., Liu, H., 2017. A new evaluation method of node importance in directed weighted complex networks. J. Syst. Sci.Inform.5(4),367–375.https://doi.org/10.21078/JSSI-2017-367-09.
[26] Yang, R., Xing, W. and Hou, S., 2020. Evaluating the risk factors influencing foreign direct investment in Mongolia's mining sector: A complex network approach. Emerging Markets Review, 43, p.100692.
[27] Yin, T., De Propris, L. and Jabbour, L., 2021. Assessing the effects of policies on China’s outward foreign direct investment. International Business Review, 30(5), p.101818.
[28] Yang, Y., Xie, G., Xie, J., 2017. Mining important nodes in directed weighted complex networks. Discret. Dyn. Nat. Soc. 2017 (5), 1–7. https://doi.org/10.1155/2017/ 9741824.
[29] Richardson, C. (2004). The Collapse of Zimbabwe in the Wake of the 2000–2003 Land Reforms. Edwin Mellen Press.
[30] Makochekanwa, A. (2020). The Economic Cost of Instability in Zimbabwe. African Development Review.
[31] FAO. (2003). Agriculture: Definitions and scope. Food and Agriculture Organization. Kaufmann, D., Kraay, A., & Mastruzzi, M. (2010). The Worldwide Governance Indicators: Methodology and Analytical Issues. The World Bank.
[32] https://fastercapital.com/topics/the-significance-of-oli-framework-in-international-business.html
[33] Kader Sahin and Kübra Mert (2022) Institutional theory in international business studies:the period of 1990–2018
[34] John H. Dunning & Sarianna M. Lundan (2008) Institutions and the OLI paradigm of the multinational enterprise
[35] Paul W. Beamish and Dwarka Chakravarty, Using the Resource-Based View in Multinational Enterprise Research
[36] Internationaltradeportal/https://www.lloydsbanktrade.com/en/market-potential/ethiopia/investment
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
