An Analysis of Critical Determinants of Economic Growth in Zambia: An Agribusiness Perspective

Patrick Lunda¹

1. Directorate of Distance Education and Open Learning, School of Business, Copperbelt University, Kitwe, Zambia.

Section:Research Paper, Product Type: Journal-Paper
Vol.11 , Issue.1 , pp.5-12, Mar-2023

Online published on Mar 31, 2023

Copyright © Patrick Lunda . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
In order to safely gauge the economy of Zambia, Economists from the Central Bank of Zambia and other private institutions conduct an analysis of the performance of the economy of the country. So, this study was conducted to understand the critical determinants of economic growth of Zambia through the measurement of GDP by sector. After political independence from Britain, Zambia’s economy had been growing steadily with much of its income coming from its exports of copper. Despite the efforts past governments had made in calling for more investment from the private sector in agriculture as a way to reduce dependence on copper, the agriculture sector has received little investment. To achieve this assessment, we utilized the Ordinary Least Squares method and estimated the model and came up with the final empirical model or equation to describe the impact of the agriculture sector, manufacturing sector and the service sector on Gross Domestic Product of Zambia. The findings indicated that there is a positive impact from the contributions of the agricultural sector, manufacturing sector and the service sector on Zambia’s GDP as provided by the coefficients of the factors in the empirical model. It was concluded that it is because of lack of investment in ultra-modern machinery that this sector seems to be contributing almost ‘nothing’ to GDP in the recent years and it is a clear sign of “priority” problem on the part of policy makers and implementers.

Key-Words / Index Term :
Agriculture Investment, Economic Sectors, Zambia Copper Exports, Gross Domestic Product

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