Abstract
Zimbabwe constitutes a good case for evaluating the impact on productivity of a change from import substitution to market-oriented policies. It has a very well-developed manufacturing sector, which at the end of the 1980s contributed over 25 per cent to GDP and produced about 7000 different products. Before the implementation of the structural adjustment program (ESAP) in 1991, controls were widespread. The overwhelming majority of firms produced under conditions where there was no foreign or domestic competition. Moreover, foreign exchange rationing severely constrained access to imports of machinery, spare parts and raw materials, resulting in chronic breakdowns and low capacity utilization (Riddell, 1988). Hence liberalization in general, and trade reform in particular, should have had a strong impact on productivity.
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© 2002 Palgrave Macmillan, a division of Macmillan Publishers Limited
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Bjurek, H., Durevall, D., Ndlela, D. (2002). Macroeconomic Policies and the Manufacturing Sector. In: Mumbengegwi, C. (eds) Macroeconomic and Structural Adjustment Policies in Zimbabwe. International Political Economy Series. Palgrave Macmillan, London. https://doi.org/10.1057/9780230391048_13
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DOI: https://doi.org/10.1057/9780230391048_13
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