What question did this study set out to answer?

This analysis aims to understand the relationship between macroeconomic instability and fiscal performance in Zimbabwe from 1980 to 2024.

Macroeconomic instability and fiscal performance in Zimbabwe: an empirical analysis

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Empirical analysis investigates fiscal performance in Zimbabwe influenced by macroeconomic factors, indicating significant improvement strategies.

This analysis aims to understand the relationship between macroeconomic instability and fiscal performance in Zimbabwe from 1980 to 2024.
Used autoregressive distributed lag model for analysis.
Conducted robustness checks using FMOLS, DOLS, and HAC-OLS.
Examined the impact of various macroeconomic indicators on tax revenue as a share of GDP.
Inflation, exchange-rate volatility, and informality significantly weaken revenue mobilisation.
Trade openness and real GDP growth strengthen tax revenue, while real interest rates show a weak negative effect.
Crisis episodes like hyperinflation and COVID-19 reduced tax revenue, whereas dollarisation enhanced fiscal predictability.

Sunde et al. (2026) studied this question.

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Empirical analysis investigates fiscal performance in Zimbabwe influenced by macroeconomic factors, indicating significant improvement strategies.