A comparative analysis of Zambian and newly industrialised country manufacturing finance models

Abstract

This study compares the Zambian and NICs manufacturing finance models to identify their similarities and differences with a view to enhance Zambia’s manufacturing finance and consequently manufacturing development. It applies structural equation modelling on a merged dataset and contrasts four dimensions of manufacturing finance namely, access to working capital finance, access to investment finance, domestic private start-up investment and foreign private start-up investment. The study finds similarities and differences between NICs and Zambia, and across NICs, showing variations in variable effects across contexts owing to varying political and economic conditions. The study argues that effective policy learning requires analyses of the functional level variations in the learning and exemplar countries.

Keywords

• Manufacturing
• finance
• policy
• SEM
• Zambia
• Newly industrialised countries