THE DETERMINANTS OF FOREIGN DIRECT INVESTMENT FLOWS IN SOUTH AFRICA /
MAGDALENE ENRUCHI WILLIAMS; SUPERVISOR: PROF. DR. MEMET AGA
- 187 sheets; 31 cm. Includes CD
Thesis (PhD) - Cyprus International University. Institute of Graduate Studies and Research Business Administration Department
Includes bibliography (sheets 146-187)
ABSTRACT The influence of environmental and economic indicators on FDI inflows in South Africa was investigated into in this study. The study was conducted based monthly time series data from the period between years 1996 to 2017. Linear, Nonlinear Autoregressive distributed lag models, BDS tests and Dynamic multipliers were employed in determining the interaction between the independent and dependent variables in this study. Symmetric relationship between ecological footprint, biocapacity and exchange rate was discovered based on the linear ARDL model. The nonlinear ARDL model revealed that increase in ecological footprint leads to decrease in the FDI inflows in the short run. While increase in EFP leads to increase in FDI. Decline in EXC leads to decline in FDI while increase in EXC leads to decrease in FDI in the short run. While the long run NARDL model indicated that positive shocks to EFP, EXC and BC is positive. And negative shocks to EFP on FDI inflows are positive. Furthermore, a positive relationship was found between EXC and FDI inflows. A negative shock to biocapacity reveals a positive response to FDI inflows. The results of this study proved there is strong asymmetric interaction between the selected variables. As a result, strategic policies and regulations must be implemented to ensure ecological sustainability and economic stability in terms of exchange rate levels in South Africa. In order to stimulate advanced clean technologies in terms of FDI manufacturing sectors in South Africa, restrictive policy guidelines on production activities should be implemented.