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Foreign direct investment and economic growth in South Africa: a sector level causality analysis
Many empirical studies hypothesise that foreign direct investment (FDI) has a positive impact on economic growth. As a result, FDI has been targeted by many countries in their attempts to increase their standards of economic growth. South Africa (like many developing economies) is not a stranger to...
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| Format: | Thesis |
| Language: | English |
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Research of GSB
2018
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| _version_ | 1867613236318175232 |
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| access_status_str | Open Access |
| author | Maseko, Michael |
| author2 | Gossel, Sean J |
| author_browse | Gossel, Sean J Maseko, Michael |
| author_facet | Gossel, Sean J Maseko, Michael |
| author_sort | Maseko, Michael |
| collection | Thesis |
| description | Many empirical studies hypothesise that foreign direct investment (FDI) has a positive impact on economic growth. As a result, FDI has been targeted by many countries in their attempts to increase their standards of economic growth. South Africa (like many developing economies) is not a stranger to this phenomenon. However, there is a dearth of literature analysing the relationship between FDI and economic growth at a sector level in South Africa. This thesis analyses the causal relationship between FDI and economic growth in South Africa at a sector level comprising primary, secondary and tertiary industries. This study applied a more robust and asymptotically reliable Toda-Yamamoto-Dolado-Lutkephol (1995) methodology in analysing the causal relationship thus addressing the potential biases and asymptotic unreliability relating the traditional Granger causality technique. The report shows that FDI Granger-causes growth in primary, secondary, tertiary sectors and at an aggregate level. In addition, growth was found to Granger-cause FDI at tertiary and aggregate level. On the other hand growth does not Granger-cause FDI at primary and secondary sector level. The only bi-directional relationship that could be observed was at the tertiary and aggregate sector level, whereas at primary and secondary sector level, the relationship was found to be unidirectional. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/29038 |
| institution | University of Cape Town (South Africa) |
| language | eng |
| last_indexed | 2026-06-10T12:32:56.154Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2018 |
| publishDateRange | 2018 |
| publishDateSort | 2018 |
| publisher | Research of GSB |
| publisherStr | Research of GSB |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/29038 Foreign direct investment and economic growth in South Africa: a sector level causality analysis Maseko, Michael Gossel, Sean J Development Finance Many empirical studies hypothesise that foreign direct investment (FDI) has a positive impact on economic growth. As a result, FDI has been targeted by many countries in their attempts to increase their standards of economic growth. South Africa (like many developing economies) is not a stranger to this phenomenon. However, there is a dearth of literature analysing the relationship between FDI and economic growth at a sector level in South Africa. This thesis analyses the causal relationship between FDI and economic growth in South Africa at a sector level comprising primary, secondary and tertiary industries. This study applied a more robust and asymptotically reliable Toda-Yamamoto-Dolado-Lutkephol (1995) methodology in analysing the causal relationship thus addressing the potential biases and asymptotic unreliability relating the traditional Granger causality technique. The report shows that FDI Granger-causes growth in primary, secondary, tertiary sectors and at an aggregate level. In addition, growth was found to Granger-cause FDI at tertiary and aggregate level. On the other hand growth does not Granger-cause FDI at primary and secondary sector level. The only bi-directional relationship that could be observed was at the tertiary and aggregate sector level, whereas at primary and secondary sector level, the relationship was found to be unidirectional. 2018-11-07T13:03:41Z 2018-11-07T13:03:41Z 2015 Master Thesis Masters MPhil http://hdl.handle.net/11427/29038 eng application/pdf Research of GSB Faculty of Commerce University of Cape Town |
| spellingShingle | Development Finance Maseko, Michael Foreign direct investment and economic growth in South Africa: a sector level causality analysis |
| thesis_degree_str | Master's |
| title | Foreign direct investment and economic growth in South Africa: a sector level causality analysis |
| title_full | Foreign direct investment and economic growth in South Africa: a sector level causality analysis |
| title_fullStr | Foreign direct investment and economic growth in South Africa: a sector level causality analysis |
| title_full_unstemmed | Foreign direct investment and economic growth in South Africa: a sector level causality analysis |
| title_short | Foreign direct investment and economic growth in South Africa: a sector level causality analysis |
| title_sort | foreign direct investment and economic growth in south africa a sector level causality analysis |
| topic | Development Finance |
| url | http://hdl.handle.net/11427/29038 |
| work_keys_str_mv | AT masekomichael foreigndirectinvestmentandeconomicgrowthinsouthafricaasectorlevelcausalityanalysis |