The Determinants of Portfolio Investment in Zimbabwe from 1994 to 2003

Topics: Investment, Macroeconomics, International economics Pages: 25 (7593 words) Published: June 25, 2013
School of Business and Management Sciences

Department of Financial Engineering

Research Title:

The determinants of Portfolio investment in Zimbabwe from 1994 to 2003

Contents
chapter 17
1.0 INTRODUCTION………………………………………………………………………...………………….7
1.1Background8
1.3 Problem statement10
1.4 Research objectives10
1.5 Research questions10
1.6 Research hypothesis11
1.7 Significance of the research11
1.8 Scope of the research12
1.9 Assumptions of the research12
1.10 Limitations of the study12
1.11 Delimitation of the study12
Chapter 213
2 Literature review13
2.1Theoretical evidence on the determinants of portfolio investment16
2.2 Empirical evidence on the determinants of portfolio flows16 CHAPTER 3…………………………………………………………………………………………………………………………………21 3.0 INTRODUCTION……………………………………………………………………………………………………………………..21 3.1 RESEARCH DESIGN…………………………………………………………………………………………………………………21 3.2 RESEARCH METHODOLOGY……………………………………………………………………………………………………23 3.3 MEASUREMENT………………………………………………………………………………………………………………….…24 3.4 DATA COLLECTION METHODS………………………………………………………………………………………………..26 3.5 DATA PRESENTATION AND ANALYSIS…………………………………………………………………………………….27 3.5.1 DIAGNOSTIC TESTS……………………………………………………………………………………… …………… …… 27 3.5.2 MULTICOLLINEARITY………………………………………………………………………………………………………… .29 3.5.3 GENERAL MODEL STUDY………………………………………………………………………………………………… …29 3.5.4 T-STATISTICS……………………………………………………………………………………………………………………….30 3.5.5 R-SQUARED……………………………………………………………………………………………………………………… 30 3.5.6 ADJUSTED R-SQUARED…………………………………………………………………………. ……….. ……………….30 CHAPTER 4……………………………………………………………………………………………………………. ………………….31 4.0 INTODUCTION…………………………………………………………………………………………………………………… …31 4.1 STATIONARITY TESTS …………………………………………………………………………………………………………….31 4.2 MULTI-COLLINEARITY TESTS……………………………………………………………………………………………… …33 4.3 REGRESSION RESULTS…………………………………………………………………………………………………………… 34 4.4 INTERPRETATION OF RESULTS……………………………………………………………………………………………….35 4.4.1 STATISTICAL INTERPRETATION……………………………………………………………………………………………36 4.4.2 ECONOMIC INTERPRETATION…………………………………………………………………………………………… 36 4.5 CONCLUSION…………………………………………………………………………………………………………………………37 CHAPTER 5………………………………………………………………………………………………………………………………….38 5.0 INTRODUCTION……………………………………………………………………………………………………………………..38 5.1 SUMMARY OF RESEARCH FINDINGS……………………………………………………………………………………… 38 5.2 GENERAL CONCLUSION………………………………………………………………………………………………………….38 5.3 POLICY IMPLICATIONS AND RECOMMENDATIONS…………………………………………………………………38 5.4 RECOMMENDATIONS FOR FUTURE STUDY……………………………………………………………………………39 6 REFERENCES……………………………………………………………………………………………………………………………..40 7 APPENDICES…………………………………………………………………………………………………………………………….43

ACKNOWLEDGEMENTS

We would like to express our profound gratitude to everyone who helped us to put together this research.

Our sincere gratitude goes to our supervisor Mr R. Chikore who offered his candour and diligence in pointing out problems and providing solutions that we faced and all advisors from the Financial Engineering department at Harare Institute of Technology who worked tirelessly in guiding us throughout the study. Without their support, this research would not have been a success.

Furthermore we would like to thank the following people and organisations who helped us in getting research data: Tatenda Mafukidze (Trading coordinator ZSE), Robert Mubaiwa (ZSE team leader trading operations), E. Masendeke (RBZ Economic research analyst), S. Jailos (Deputy Director HR Ministry of Finance, the Zimbabwe Stock Exchange, the Ministry of Finance Library, the Reserve Bank of Zimbabwe and the Zimbabwe National Statistics Agency.

Finally we wish to thank our families and friends. The inspiration they provided during this research cannot be measured but certainly was essential.

Abstract
The understanding of foreign investment flows is important for a country’s policy makers, since such flows make up a...

References: Determinants of portfolio investment in Zimbabwe. (From 1993 to 2004)
1.0 Introduction
According to literature, Christian Wildmann (2010), the various possible determinants of portfolio investments are:
* Macroeconomic variables which are political risk, tax rates, inflation, real GDP growth rates, interest rates and exchange rate risk.
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