Foreign Direct Investment: South Africa’s Elixir of Life?
Tina Moolman (),
J.C. Le Roux and
Charlotte Du Toit ()
Additional contact information
Tina Moolman: Department of Economics, University of Pretoria
J.C. Le Roux: Department of Economics, University of Pretoria
Charlotte Du Toit: Department of Economics, University of Pretoria
No 200605, Working Papers from University of Pretoria, Department of Economics
Foreign direct investment (FDI) has of late been revered as the solution to a great deal of the developing world’s problems. This paper seeks to examine the macroeconomic link between foreign direct investment in South Africa, and its resultant impact on potential output. Cointegration techniques and time-series data from 1970-2003 are utilized to construct a model suitable for policy analysis. Policy options, through which the level of foreign direct investment inflow can be raised, and its’ ultimate impact on output are investigated. Empirical results indicate that market size, openness, infrastructure and nominal exchange rate are factors on which South African policy makers should focus when seeking to attract foreign direct investment.
Keywords: foreign direct investment; potential output; economic growth; macroeconomic model (search for similar items in EconPapers)
JEL-codes: C5 C22 E22 (search for similar items in EconPapers)
Pages: 29 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:200605
Access Statistics for this paper
More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().