Formalisation of Informal Exporters for Sustainable Export Growth in Zimbabwe

Abstract

The study aims at developing a pragmatic and context sensitive framework to understand the influence of select policy and institutional factors in the formalisation of informal exporters for sustainable export growth in Zimbabwe. The study is rooted in Institutional Theory, the Resource-Based View and the Complex Adaptive Systems Theory. The study uses a quantitative explanatory research design guided by a positivist research philosophy. Primary data collection was done using a structured questionnaire to informal and semi-formal exporters. A sample of 239 respondents was selected using stratified random sampling to ensure that it represents each category of export-oriented small and medium enterprises (SMEs). Ordinal logistic regression analysis was used together with post[1]estimation diagnostic tests for multicollinearity and heteroskedasticity. The study finds that the fiscal approaches, regulatory mechanisms, digitalisation and entrepreneurial education has a positive and statistically significant impact on formalisation and inclusion of informal exporters, with regulatory mechanisms having the most significant impact. The study concludes that formalisation is a multidimensional, institutionally embedded process and it is not possible to effectively achieve it through isolated interventions. The study recommends adoption of an integrated policy framework, including congruence between regulatory reform, fiscal incentives and digital systems and better target entrepreneurship education for inclusive and sustainable export incentives in Zimbabwe.