An Empirical Analysis of The Determinants of Economic Growth In Zambia: 1973-2013

George M. Mukupa, Agness Lungu ,Stephen Chibangula

In this paper, we assess the key determinants of economic growth in Zambia between 1973 and 2013. In this view, a model is developed to assess investment, infrastructure development, economic diversification, and human development. Following the endogenous growth theories which postulate that policies play a substantial role in advancing growth on a long-run basis, we make use of exploratory data analysis techniques, multiple regression analysis and statistical tests to model economic growth as a function of foreign direct investment, construction, exports of goods and services and gross national income per capita power parity. We find that the real domestic product increased four times per unit increase in foreign direct investment, and the gross national income has a one-to-one correspondence with economic growth.