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Corresponding Author:
Glenda Maluleke, Department of Economics, University of South Africa, Pretoria, South Africa

Coauthors:
Nicholas M. Odhiambo, Department of Economics, University of South Africa, Pretoria, South Africa
Sheilla Nyasha, Department of Economics, University of South Africa, Pretoria, South Africa

The Determinants of Domestic Private Investment in Malawi: an Empirical Investigation

November 7, 2022
JEL classification: E22; H54
Keywords: Private Investment, Determinants; ARDL Approach; Malawi

Abstract

The study investigated the determinants of domestic private investment in Malawi using the autoregressive distributed-lag (ARDL) bounds testing approach for the period from 1980 to 2018. The findings show that in the long run, inflation and interest rate are the negative determinants of private investment. In the short run, private and public investment from the previous period and trade openness are found to be the positive determinants. Inflation and interest rate are found to be the negative determinants in the short run. The study also found that economic growth and domestic credit to the private sector are insignificant in determining private investment. The study recommends that the government develop and adopt policies that will create a conducive environment for the private sector to invest.


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