- Title
- The impact of foreign direct investment (FDI) on economic growth in South Africa
- Creator
- Ansong, Ama Yiadomaa
- Subject
- Investments, Foreign -- South Africa
- Subject
- Infrastructure (Economics) -- South Africa Gross domestic product -- South Africa Economic development -- South Africa South Africa -- Economic conditions
- Date Issued
- 2018
- Date
- 2018
- Type
- Thesis
- Type
- Masters
- Type
- MPhil
- Identifier
- http://hdl.handle.net/10948/21494
- Identifier
- vital:29527
- Description
- Numerous studies have investigated FDI and the possible benefits for African countries in terms of job creation opportunities, technology transfers, growth and development. Despite these potential benefits, FDI also has its negative effects on the host country in terms of market dominance, profit repatriation and loss of tax revenue if tax incentives are offered. In an effort to attract more FDI, host countries have undertaken various policy incentives to attract foreign investors. This study examines the trends and determinants of FDI flows to South Africa and other African countries. The period chosen for this study is from 1990- 2016. The study commences with a background study of FDI and GDP. Various literature offerings and different schools of thought with regard to FDI are also deliberated. To offer a better understanding of the relationship between FDI and GDP, econometric estimation was employed. The econometric estimation methods employed were, Unit Root, Johansen Cointegration, Vector Error Correction (VECM), Impulse Response Test, Variance Decomposition and the Granger Causality Test. Based on Granger causality test it can be concluded that South Africa’s economic growth attracts FDI and not vice versa. South Africa must therefore focus on growing its economy to attract more FDI.
- Format
- ix, 88 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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