Thesis (MBA) - Cyprus International University. Institute of Graduate Studies and Research Business Administration

Foreign direct investment is regarded an important link between industrialized and economically developing countries, it is often likened to trade as it proffers an essential path for far-reaching integration and technology transfer. It is infact a considerably significant building block in pursuit of economic growth, development and employment creation. South African law makers have put forward policies whose aim is to attract foreign direct investment (FDI) into South Africa. Even so, these said policies have not yielded much fruit as anticipated foreign direct investment flows remain below expectation. The focus of this research is to probe different determinants of FDI in South Africa. The study utilized the Cross Quantililogram (CQ) methodology using yearly secondary data from 1990 up until 2020 which was collected from the World Bank’s Development Indicators. The econometric results showed that the paneled determinants namely; inflation, economic growth, natural resources and political risk have different impacts on FDI. In summation, economic growth and inflation are significant long-term determinants of foreign direct investment. However, natural resource and political risk yielded negative significant effects on FDI. Leaning on these results, this study posits that transparent and consistent growth enducing policies ought to be implemented to reduce ambiguity and provide a stable investment environment.