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The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region

Emerging economies across the globe are faced with a gap between savings and investment needed to grow their economies. Thus, in recent years, Foreign Direct Investment (FDI) and Remittances have been identified as key sources of financing to bridge this gap. The study investigates the impact of For...

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Main Author: Mushori, Roosevelt
Other Authors: Gossel, Sean
Format: Thesis
Language:English
English
Published: Graduate School of Business (GSB) 2026
Subjects:
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access_status_str Open Access
author Mushori, Roosevelt
author2 Gossel, Sean
author_browse Gossel, Sean
Mushori, Roosevelt
author_facet Gossel, Sean
Mushori, Roosevelt
author_sort Mushori, Roosevelt
collection Thesis
description Emerging economies across the globe are faced with a gap between savings and investment needed to grow their economies. Thus, in recent years, Foreign Direct Investment (FDI) and Remittances have been identified as key sources of financing to bridge this gap. The study investigates the impact of Foreign Direct Investment (FDI) and remittances on economic growth in 16 Southern African Development Community (SADC) member states between 2010 and 2022. Using the Generalised Method of Moments (GMM) analysis, the study finds that the effect of FDI on economic growth in the region is statistically insignificant, whereas remittances have a negative impact on economic growth in both the short- and long-run. The findings also suggest that FDI and remittances have a weak substitutive relationship, rather than being complementary to each other interactively. These findings thus indicate that FDI and remittances do not promote economic growth in the SADC region.
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language English
eng
last_indexed 2026-06-10T12:33:43.673Z
license_str Not specified — see source repository
provenance_str_mv Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository
publishDate 2026
publishDateRange 2026
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publisher Graduate School of Business (GSB)
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spelling oai:open.uct.ac.za:11427/42504 The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region Mushori, Roosevelt Gossel, Sean Foreign Direct Investment Southern African Development Community Generalised Method of Moments Emerging economies across the globe are faced with a gap between savings and investment needed to grow their economies. Thus, in recent years, Foreign Direct Investment (FDI) and Remittances have been identified as key sources of financing to bridge this gap. The study investigates the impact of Foreign Direct Investment (FDI) and remittances on economic growth in 16 Southern African Development Community (SADC) member states between 2010 and 2022. Using the Generalised Method of Moments (GMM) analysis, the study finds that the effect of FDI on economic growth in the region is statistically insignificant, whereas remittances have a negative impact on economic growth in both the short- and long-run. The findings also suggest that FDI and remittances have a weak substitutive relationship, rather than being complementary to each other interactively. These findings thus indicate that FDI and remittances do not promote economic growth in the SADC region. 2026-01-09T11:17:21Z 2026-01-09T11:17:21Z 2025 2026-01-06T12:48:02Z Thesis / Dissertation Masters Masters http://hdl.handle.net/11427/42504 en eng application/pdf Graduate School of Business (GSB) Faculty of Commerce University of Cape Town
spellingShingle Foreign Direct Investment
Southern African Development Community
Generalised Method of Moments
Mushori, Roosevelt
The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region
thesis_degree_str Master's
title The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region
title_full The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region
title_fullStr The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region
title_full_unstemmed The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region
title_short The impact of foreign direct investment (FDI) and remittances on economic growth in the SADC Region
title_sort impact of foreign direct investment fdi and remittances on economic growth in the sadc region
topic Foreign Direct Investment
Southern African Development Community
Generalised Method of Moments
url http://hdl.handle.net/11427/42504
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