Does corruption hampers inward FDI in South Africa from other African countries? a gravity model analysis

Teboho Mosikari, Tselane Confidence Nthebe and Joel Eita

MPRA Paper from University Library of Munich, Germany

Abstract: The purpose of this paper is to investigate the relationship between corruption and FDI inflows from other African countries to South Africa. The study uses gravity model and employs panel data econometric technique such as pooled, fixed and random effects model. The results indicate that there is a significant negative relationship between corruption and FDI inflows from other African countries to South Africa. This implies that policy makers in South Africa should implement measures to curb corruption. This will help in attracting FDI inflows from other African countries and encourage the creation of job opportunities.

Keywords: Corruption; FDI inflows; Panel gravity model (search for similar items in EconPapers)
JEL-codes: B40 C1 C10 F14 F2 (search for similar items in EconPapers)
Date: 2018-05-20, Revised 2018-07-10
New Economics Papers: this item is included in nep-int
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:88735

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