The Mediating Role of Institutional Quality in the Re-industrialisation-Export Performance Nexus: Evidence from the Zimbabwean Manufacturing Sector

This study investigates the mediating effect of institutional quality in the relationship between re-industrialisation and export performance within Zimbabwe's manufacturing sector. The study employs a descriptive research design, using structured questionnaires to collect data from 384 officials from active manufacturing exporters. The collection of primary research data was done by way of an online questionnaire survey administered to the 384 participants selected by way of stratified random sampling. The study analysed data using the Structural Equation Modelling (SEM) which was performed in R studio. The study found that institutional quality had a significant mediating effect on the relationship between re-industrialisation and export performance. It also found that re-industrialisation had a significant direct effect on export performance. It is evident from the findings that there is an urgent need for the Zimbabwean government to institute comprehensive institutional reforms aimed at strengthening the rule of law, improving government effectiveness and Government policy enhancing governance accountability. should deliberately prioritise the establishment of a robust predictable legal environment, anticorruption measures and streamlining bureaucracy to buttress growth and export competitiveness. Manufacturers should engage policy-makers on issues of policy, diversify export markets and adopt cost-saving technologies to navigate institutional challenges. The study is motivated by the lack of empirical evidence drawn from Zimbabwe on the moderating effect of institutional quality. Therefore, the study contributes to the bridging of this gap by proffering research evidence in that regard. The study also advances recommendations for policy reform in Zimbabwe.