Influence of Financial Instability and Economic Growth in Foreign Direct Investment in South Africa

Badamasi Sani Mohammed (), Sadun Naser Yassin Alheety () and Zakarya Mohsen Al-Hodiany ()

Journal of Developing Economies, 2022, vol. 4, issue 2, 1 - 9

Abstract: Purpose: The prime objective of this paper is to study the impact of financial instability (FI) and economic growth (RGDPP) on foreign direct investment (FDI) in South Africa from 1970 to 2016. Methodology: The study used Autoregressive Distributive Lag (ARDL) approach. Evidence from bound test reveals that FI, RGDPP, and FDI are cointegrated in the long run. Findings: The result shows that financial instability and economic growth are positively significant and negatively insignificant influencing the foreign direct investment respectively. Recommendation: The study suggests that government should necessarily develop financial system to let economic growth make a positive contribution to foreign direct investment.

Keywords: Financial Instability (FI); Economic growth (RGDPP); foreign direct Investment (FDI); Autoregressive Distributive Lag (ARDL) (search for similar items in EconPapers)
Date: 2022
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ajpojournals.org/journals/index.php/JDE/article/view/1247/1359 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bfy:ojtjde:v:4:y:2022:i:2:p:1-9:id:1247

Access Statistics for this article

More articles in Journal of Developing Economies from AJPO Journals Limited
Bibliographic data for series maintained by Chief Editor ().