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Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa

The focus of the study is to explore on the role of Foreign Direct Investment (FDI) in the Economic Development of South Africa. South Africa is a developing country and, just like other developing countries around the world, it requires FDI for its socio-economic and political development. Using th...

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Main Author: Mathlako, Dineo
Other Authors: Biekpe, Nicholas
Format: Thesis
Language:English
Published: Graduate School of Business (GSB) 2021
Subjects:
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access_status_str Open Access
author Mathlako, Dineo
author2 Biekpe, Nicholas
author_browse Biekpe, Nicholas
Mathlako, Dineo
author_facet Biekpe, Nicholas
Mathlako, Dineo
author_sort Mathlako, Dineo
collection Thesis
description The focus of the study is to explore on the role of Foreign Direct Investment (FDI) in the Economic Development of South Africa. South Africa is a developing country and, just like other developing countries around the world, it requires FDI for its socio-economic and political development. Using the quantitative research methods, and following the descriptive analysis of data gathered from a questionnaire, the study is presented based on the relevant information gathered on the role of FDI on Economic Development of South Africa. This study found that FDI plays an important part within South Africa. Firstly, the study gathered information about factors that impact on the flow of FDI within South Africa. Amongst these factors there is the political nature of the country in which more stable political environment and the investment policies. FDIs within South Africa are a source of external capital which can lead to economic development. Furthermore, within the country, the study concludes that FDI leads to increased revenue and to the development of new industries. Technological advancements have also been brought about by FDI leasing to the socio-economic development of South Africa. The study however concludes that within South Africa, FDI can be a hindrance to domestic investment since it challenges the survival of domestic industries. The thrust with FDI is the focus on resources and capital elsewhere other than the investor's home country. In this regard, FDI has a negative impact on the country's investment. Ideally, the rules that govern foreign exchange rates and investments negatively impact on the investing country. The study therefore recommends the adjustment of investment policies that attract investments, such as policies promoting fair business practices.
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institution University of Cape Town (South Africa)
language eng
last_indexed 2026-06-10T12:31:35.974Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2021
publishDateRange 2021
publishDateSort 2021
publisher Graduate School of Business (GSB)
publisherStr Graduate School of Business (GSB)
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source_str UCTD — University of Cape Town Open Access Repository
spelling oai:open.uct.ac.za:11427/32839 Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa Mathlako, Dineo Biekpe, Nicholas Marwa, Nyankomo Development Finance The focus of the study is to explore on the role of Foreign Direct Investment (FDI) in the Economic Development of South Africa. South Africa is a developing country and, just like other developing countries around the world, it requires FDI for its socio-economic and political development. Using the quantitative research methods, and following the descriptive analysis of data gathered from a questionnaire, the study is presented based on the relevant information gathered on the role of FDI on Economic Development of South Africa. This study found that FDI plays an important part within South Africa. Firstly, the study gathered information about factors that impact on the flow of FDI within South Africa. Amongst these factors there is the political nature of the country in which more stable political environment and the investment policies. FDIs within South Africa are a source of external capital which can lead to economic development. Furthermore, within the country, the study concludes that FDI leads to increased revenue and to the development of new industries. Technological advancements have also been brought about by FDI leasing to the socio-economic development of South Africa. The study however concludes that within South Africa, FDI can be a hindrance to domestic investment since it challenges the survival of domestic industries. The thrust with FDI is the focus on resources and capital elsewhere other than the investor's home country. In this regard, FDI has a negative impact on the country's investment. Ideally, the rules that govern foreign exchange rates and investments negatively impact on the investing country. The study therefore recommends the adjustment of investment policies that attract investments, such as policies promoting fair business practices. 2021-02-12T12:19:20Z 2021-02-12T12:19:20Z 2020 2021-02-12T04:58:32Z Master Thesis Masters MCom http://hdl.handle.net/11427/32839 eng application/pdf Graduate School of Business (GSB) Faculty of Commerce
spellingShingle Development Finance
Mathlako, Dineo
Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
thesis_degree_str Master's
title Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
title_full Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
title_fullStr Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
title_full_unstemmed Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
title_short Understanding the Role of Foreign Direct Investment in the Economic Development of South Africa
title_sort understanding the role of foreign direct investment in the economic development of south africa
topic Development Finance
url http://hdl.handle.net/11427/32839
work_keys_str_mv AT mathlakodineo understandingtheroleofforeigndirectinvestmentintheeconomicdevelopmentofsouthafrica