Skip to main content
SpringerLink
Log in

The Structural Adjustment Implications of Real Exchange Rate Depreciation on the Manufacturing Sector in Zimbabwe

  • Chapter
Constraints on the Success of Structural Adjustment Programmes in Africa

Abstract

Real exchange rate depreciation lies at the heart of structural adjustment and stabilisation programmes, particularly those supported by the IMF and the World Bank. Notwithstanding this, there is still considerable controversy surrounding the efficacy of exchange rate depreciation in fostering export expansion and improving resource allocation.

For a fuller discussion of the issues raised here, refer to Muzulu (1993), on which this chapter is based.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 29.99
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 16.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Bird, G. (1983) ‘Should Developing Countries use Currency depreciation as a Tool of Balance of Payments Adjustment? A Review of the Theory, Evidence and a guide for the Policy Maker’, Journal of Development Studies, 19 (4).

    Google Scholar 

  • Chhibber, A. and N. Shafik, (1990) ‘Does Devaluation Hurt Private Investment? The Indonesian Case’, Policy, Research and External Affairs Working Paper, WPS 418 (World Bank).

    Google Scholar 

  • Crockett, A.D. (1981) ‘Stabilisation Policies in Developing Countries: Some Policy Considerations’, IMF Staff Papers, 28 (1).

    Google Scholar 

  • Dailami, M. and M. Walton (1989) ‘Private Investment, Government Policy, and Foreign Capital in Zimbabwe’, Policy, Research and External Affairs Working Paper, WPS 248 (World Bank).

    Google Scholar 

  • Davies, R. (1991) ‘Trade, Trade Management and Development in Zimbabwe’, in J.H. Frimpong-Ansah, S.M.R. Kanbur and P. Svedberg (eds), Trade and Development in Sub-Saharan Africa (Manchester: Manchester University Press).

    Google Scholar 

  • Davies, R., D. Sanders and T. Shaw (1992) ‘Liberalisation for Development: Zimbabwe’s Adjustment without the Fund’, in G.A. Cornia, R. van der Hoeven and T. Mkandawire (eds), Africa’s Recovery in the 1990s: From Stagnation and Adjustment to Human Development (New York: St. Martin’s Press).

    Google Scholar 

  • Demery, L. and T. Addison (1988), ‘Adjustment and Income Distribution: The Role of Labour Markets’, University of Warwick Development Economics Research Centre Discussion Paper, 81.

    Google Scholar 

  • Drabu, H.A., (1992) ‘Capital to Output Ratios and Growth: Conceptual Issues and Empirical Evidence’, in A. Ghosh, K.K. Subrahmanian, M. Eapen and H.A. Drabu (eds), Indian Industrialisation: Structure and Policy Issues (Delhi: Oxford University Press).

    Google Scholar 

  • Durevall, D. (1989) ‘Trade Policy, Employment and Equity in Zimbabwe’, SIDA Macroeconomic Studies, 6, Stockholm.

    Google Scholar 

  • Economist Intelligence Unit (EIU), Zimbabwe, Malawi: Country Reports (Various).

    Google Scholar 

  • Edwards, S. and F. Ng (1985) ‘Trends in Real Exchange Rate Behaviour in Selected Developing Countries’, World Bank Country Programs Department Discussion Paper, 16.

    Google Scholar 

  • Fallon, P.R. and R.E.B. Lucas (1991) ‘The Impact of Changes in Job Security Regulation in India and Zimbabwe’, The World Bank Observer, 5 (3).

    Google Scholar 

  • Ffrench-Davis, R. and R. Madrid (1992) ‘Trade Liberalisation in Chile: Experiences and Prospects’, UNCTAD Trade Policy Series, 1

    Google Scholar 

  • Goldstein, M. (1986) ‘The Global Effects of Fund-Supported Adjustment Programs’, IMF Occasional Paper, 42.

    Book  Google Scholar 

  • Government of Zimbabwe (199la) Zimbabwe: A Framework for Economic Reform (1991–95) (Harare: Government Printer).

    Google Scholar 

  • Government of Zimbabwe (1991b) The Promotion Of Investment: Policy and Regulations (Harare: Government Printer).

    Google Scholar 

  • Government of Zimbabwe (1991c) Second Five-year National Development Plan (1991–1995) (Harare: Government Printer).

    Google Scholar 

  • Green, R.H. and X. Kadhani (1986) ‘Zimbabwe: Transition to Economic Crisis: Retrospect and Prospect’, World Development, 14 (8).

    Google Scholar 

  • Hawkins, A.M, P.J. McBurney, M.A. Hadur and W. Clantanoff (1988) Formal Sector Employment Demand Conditions in Zimbabwe (Harare: University of Zimbabwe).

    Google Scholar 

  • Johnson, O.E.G. (1987) ‘Currency Depreciation and Export Expansion’, Finance and Development, 24 (1).

    Google Scholar 

  • Kanyenze, G. (forthcoming) ‘The Impact of Economic Stabilisation on the Wage Structure in Zimbabwe’, DPhil Thesis (University of Sussex, Brighton: Unpublished).

    Google Scholar 

  • Kaplinsky, R. and Posthuma, A. (forthcoming) Organisational Change in Zimbabwean Manufacturing (Maastricht: UN University).

    Google Scholar 

  • Kunaka, C. (1991) ‘The Railways and the Zimbabwe Coal Crisis of the late 1980s’, Geographical Journal of Zimbabwe, 22.

    Google Scholar 

  • Lall, S. (1993) ‘Trade Policies for Development: A Policy Prescription for Africa’, Development Policy Review, 11.

    Google Scholar 

  • Moyana, K.J. (1991) ‘Framework for Economic Reform in Zimbabwe (1991–1995)’, Paper presented at the ICEG Conference, Nairobi, October 2–5.

    Google Scholar 

  • Muzulu, J. (1993) ‘Real Exchange Rate Depreciation and Structural Adjustment: The Case of the Manufacturing Sector in Zimbabwe (1980–1991)’, DPhil Thesis (University of Sussex, Brighton: Unpublished).

    Google Scholar 

  • Pack, H. (1976) ‘The Substitution of Labour for Capital in Kenyan Manufacturing’, Economic Journal, 86 (341).

    Google Scholar 

  • Reddaway, W.B. (1962) The Development of the Indian Economy (London: George Allen & Unw in Ltd).

    Google Scholar 

  • Riddell, R. (1990) ‘Zimbabwe’, in Riddell (ed.), Manufacturing Africa (London: James Currey).

    Google Scholar 

  • Serven, L. and A. Solimano (1991) ‘Adjustment Policies and Investment Performance in Developing Countries: Theory, Country Experiences, and Policy Implications’, Policy, Research, and External Affairs Working Papers, WPS 606 (World Bank).

    Google Scholar 

  • Steel, W.F. and L.M. Webster (1991) ‘Small Enterprise under Adjustment in Ghana’, Industry and Finance Series, World Bank Technical Paper, 138.

    Google Scholar 

  • Stoneman, C. (1988) ‘The Economy: Recognising the Reality’, in Stoneman (ed.), Zimbabwe’s Prospects (London: Macmillan)

    Google Scholar 

  • Thomas, V. (1989) ‘Developing Country Experience in Trade Reform’, Policy, Planning and Research Working Paper, WPS 295 (World Bank).

    Google Scholar 

  • UNCTAD (1992) Trade and Development Report (New York: UN).

    Google Scholar 

  • UNIDO (1986) The Manufacturing Sector in Zimbabwe (Vienna: UNIDO).

    Google Scholar 

  • Ward, M. (1976) The Measurement of Capital: The Methodology of Capital Stock Estimates in OECD Countries (Paris: OECD).

    Google Scholar 

  • World Bank (1981) Accelerated Development in Sub-Saharan Africa: An Agenda for Action (Washington DC: World Bank).

    Google Scholar 

  • World Bank (1989) Sub-Saharan Africa: From Crisis to Sustained Growth (Washington DC: World Bank).

    Google Scholar 

  • World Bank (1990) Making Adjustment Work for the Poor: A Framework for Policy Reform in Africa (Washington DC: World Bank).

    Google Scholar 

  • World Bank (1992) World Bank Support for Industrialisation in Korea, India, and Indonesia (Washington DC: Operations Department, World Bank).

    Google Scholar 

Download references

Authors
  1. Joseph Muzulu
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. Institute of Development Studies, University of Sussex, Brighton, UK

    Charles Harvey (Professorial Fellow) (Professorial Fellow)

Copyright information

© 1996 Charles Harvey

About this chapter

Cite this chapter

Muzulu, J. (1996). The Structural Adjustment Implications of Real Exchange Rate Depreciation on the Manufacturing Sector in Zimbabwe. In: Harvey, C. (eds) Constraints on the Success of Structural Adjustment Programmes in Africa. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-24373-0_3

Download citation

Publish with us

Policies and ethics

Search

Navigation