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Determinants of FDI in South Africa: Do macroeconomic variables matter?

Nandipha Dondashe () and Andrew Phiri ()
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Nandipha Dondashe: Department of Economics, Nelson Mandela University

No 1802, Working Papers from Department of Economics, Nelson Mandela University

Abstract: In this study we examine the macroeconomic determinants of FDI for the South African economy using data collected between 1994 and 2016 using the ARDL model for cointegration. The specific macroeconomic determinants which are used in the study are per capita GDP, the inflation rate, government size, real interest rate variable, and terms of trade. With the exception of inflation the remaining macroeconomic determinants employed in the study are positively and significantly related with FDI. However, in the short-run all variables are positively and significantly correlated with FDI. Collectively, these results have important implications for policymakers.

Keywords: FDI; ARDL cointegration; Financial crisis; South Africa. (search for similar items in EconPapers)
JEL-codes: C13 C22 C51 C52 F21 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2018-01, Revised 2018-01
New Economics Papers: this item is included in nep-afr, nep-int and nep-mac
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http://repec.mandela.ac.za/RePEc/mnd/wpaper/paper.1802.pdf First version, 2018 (application/pdf)

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Working Paper: Determinants of FDI in South Africa: Do macroeconomic variables matter? (2018) Downloads
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