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All Journal International Journal of Economics and Management
Nsakaza, Kalimanshi
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Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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Does Africa’s Industrialization Foster Sustainable Emission Decoupled Economic Growth? The Case of Zambia and South Africa Nsakaza, Kalimanshi; Simuchimba, Joshua; Banda, Evelyn
International Journal of Economics and Management Vol. 2 No. 02 (2024): IEM : International Journal of Economics and Management
Publisher : Cattleya Darmaya Fortuna

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54209/iem.v2i02.30

Abstract

In fostering sustainable growth for many developing nations, there is an urgent need to re-engineer the industrial sector towards one that promotes value addition, particularly on the industrial base. Zambia and South Africa’s major economic challenges revolve around their persistent economic dependence on copper and gold. Within the context of their broader goals to diversify their economies, Zambia has struggled to reduce its reliance on copper despite various initiatives, while South Africa faces declining gold production and the need to adapt to global sustainability trends and changing resource demands. Using a dynamic Panel ARDL model, this study thus analysed the effects of industrialization on sustainable emission decoupled economic growth using data from 1970-2022 for South Africa and Zambia. Our results showed that the metallic, food and beverages, paper, and wood products industries significantly affected emission decoupled economic growth in South Africa, while only the fabricated metal and wood industry significantly fostered economic growth in Zambia in the short run. In the long run, for both countries, only the paper and non-metallic industries affected economic growth significantly. The study concluded that while extractive and high emitting industrial sectors are the most feasible in the case of most African countries; to be able to accelerate sustainable economic growth through the industrial sector, these nations will have to re-engineer their industrial sectors towards a more commodity-aligned approach that puts value addition and emission reduction through regional value chains at the pinnacle of policy and national development strategies.
A Traditional and Non-traditional Export Performance Assessment: An empirical examination of factors enhancing the competitiveness of Zambia's Exports Nsakaza, Kalimanshi; Kanchebele, Emmanuel
International Journal of Economics and Management Vol. 2 No. 01 (2024): IEM : International Journal of Economics and Management
Publisher : Cattleya Darmaya Fortuna

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.54209/iem.v2i01.32

Abstract

This study examined the performance of traditional and non-traditional exports and further analyzed the factors that determine their performance in Zambia using a time series analysis (1960 and 2021). With the aid of the Vector error correction model, the study found that increases in the Real GDP, and Foreign Direct Investment of Zambia positively and significantly affected the volume of exports. In the analysis of aggregate exports, the non-significance of the relative price elasticity (Foreign Exchange rate) suggests that trade policies that concentrate overly on expenditure switching such as tariff and non-tariff restrictions or devaluations do not effectively assist trade policy reform efforts. The study thus recommends the need to promote inclusiveness, diversification and growth in investment towards the production of export commodities, particularly through the Multi-Facility Economic Zones by providing incentives to expand export diversification and growth at the local level through revising the Fiscal and non-Fiscal incentive thresholds in MFEZs to reflect the financing capacity of local investors.
Co-Authors Banda, Evelyn Kanchebele, Emmanuel Simuchimba, Joshua