scispace - formally typeset
Search or ask a question

What is the relationship between foreign direct investment and gdp in South Africa? 

Medicine
Distributed lag
Divestment
Exchange rate
Crowds
Best insight from top research papers

Foreign direct investment (FDI) in South Africa has a significant relationship with GDP. Studies show that FDI inflows impact economic growth positively, with FDI being a crucial component in providing resources and facilitating globalization. However, there are complexities in this relationship. Public investment in South Africa has been found to have a negative impact on private investment, including FDI. Additionally, the effect of foreign direct divestments (FDD) on economic growth and development in South Africa is detrimental, outweighing the positive effects of FDI inflows. Financial instability and economic growth also influence FDI, with financial instability positively significant and economic growth negatively insignificant in their impact on FDI. Overall, while FDI can positively impact GDP, various factors such as public investment, divestments, and financial stability play crucial roles in shaping this relationship in South Africa.

Answers from top 5 papers

More filters
Papers (5)Insight
Journal Article•DOI
Carbon emission effect of renewable energy utilization, fiscal development, and foreign direct investment in South Africa
Daberechi Chikezie Ekwueme, Joshua Dzankar Zoaka, Andrew Adewale Alola 
31 Mar 2021-Environmental Science and Pollution Research
23 Citations
Foreign direct investment and GDP in South Africa have a statistically positive correlation in the short run, as indicated by the research findings.
Open access•Journal Article•DOI
Influence of financial instability and economic growth in foreign direct investment in south africa
Badamasi Sani Mohammed, Sadun Naser Yassin Alheety, Zakarya Mohsen Al-Hodiany 
27 Feb 2021
Financial instability and economic growth positively and negatively influence foreign direct investment in South Africa, respectively, as per the study. A strong financial system can enhance FDI.
Open access•Posted Content•DOI
Crowding in or crowding out? Public Investment and Private Investment in South Africa: An ECM Approach
Dumisani Pamba
31 Jan 2022
In South Africa, foreign direct investment is crowded out by government consumption expenditure, while real GDP crowds in credit to the private sector.
Journal Article•DOI
The Asymmetric Effect of Political Risk and Exchange Rate Fluctuations on Foreign Direct Investment Inflows in South Africa
Daniel Francois Meyer, Paul-Francois Muzindutsi 
01 Mar 2023-Journal of Developing Areas
The study found that foreign direct investment (FDI) inflows in South Africa are influenced by political risk, exchange rate fluctuations, and GDP as a balancing variable.
Open access•Journal Article•DOI
Foreign divestment, economic growth and development in South Africa: an empirical analysis
Weliswa Matekenya, Clement Moyo 
09 Feb 2023-Journal of Chinese Economic and Foreign Trade Studies
Foreign divestments have a negative impact on both economic growth and development in South Africa, outweighing the positive effects of FDI inflows.

Related Questions

Is there a connection between FDI and economic growth?5 answersThere is a connection between FDI and economic growth. Analysis of the early decades of the sample shows that there is no statistically significant correlation between FDI and growth for countries with average levels of education or financial depth. However, the correlation is positive and statistically significant for countries with well-developed financial sectors or high levels of human capital. FDI has proven to be the right choice for achieving sustainable economic growth and high income, as it enables strong economic growth and restructuring through increasing labor productivity and economic efficiency. Most studies conclude that FDI influences economic growth in a positive way, although there are conflicting findings. Empirical results reveal that positive FDI shocks have an important causal impact on economic growth in most countries. FDI has a statistically significant and positive relationship with economic growth at the global scale.
What is the relationship between GDP and FDI?5 answersThe relationship between GDP and FDI varies across different countries and contexts. In some cases, FDI inflows have been found to accelerate economic growth, indicating a positive relationship between GDP and FDI. FDI is considered critical for a country's economic development, particularly in transitional economies, and has been found to have a positive impact on employment levels in the host country. However, the relationship between net FDI inflows and real GDP in Turkey has been found to be uni-directional and short-term, with real GDP having a positive effect on FDI inflows. Additionally, FDI has been found to have a mediator role in the relationship between the Global Innovation Index (GII) and GDP, indicating a positive and significant relationship between GII, FDI, and GDP. The relationship between FDI and GDP also varies across different economies, with long-run equilibrium existing for some countries but not for others.
What is the impact of GDP to foreign direct investment?4 answersGDP has a significant impact on foreign direct investment (FDI). The analysis of various studies shows that there is a positive correlation between GDP and FDI, indicating that as GDP increases, FDI inflows also tend to increase. The empirical evidence confirms that GDP growth rate is one of the important factors influencing FDI inflows. However, some studies suggest that the impact of GDP on FDI may not be significant or may vary depending on other factors such as trade activities, interest rates, and exchange rates. Overall, a strong GDP growth rate is generally seen as an attractive factor for foreign investors, leading to increased FDI inflows in a country.
Borensztein, E. et al.,1998. How does foreign direct investment affect economic growth?4 answersForeign direct investment (FDI) has a positive impact on economic growth in both developing and developed countries. FDI contributes to economic development by creating new jobs, promoting technological innovation, and increasing export trade. In Sub-Saharan African countries, FDI positively affects tourism growth, which in turn contributes to economic growth. Additionally, FDI has a direct and significant effect on economic growth in Indonesia, particularly in the short term. However, the impact of FDI on economic growth in China's eastern region is not explicitly mentioned in the available abstracts. Overall, the research suggests that FDI plays a crucial role in driving economic growth and development, and policymakers should implement strategies to attract and promote FDI to stimulate economic growth.
What is the contribution of smes in south africa to gdp and employment?5 answersSmall and Medium Enterprises (SMEs) in South Africa contribute significantly to GDP and employment. SMEs in South Africa account for about 40% of the country's gross value-added (GDP). Additionally, SMEs create almost 60% of employment in the country. SMEs constitute close to 91% of the formal businesses in South Africa and contribute between 51% and 57% of the GDP. Furthermore, SMEs in South Africa are estimated to contribute over 70% in employment and 30% - 40% in GDP in other African countries. Overall, SMEs play a crucial role in the South African economy by generating significant GDP and creating a substantial number of jobs.
How foreign direct investment effect economic growth?4 answersForeign direct investment (FDI) has a positive and significant effect on economic growth. FDI inflows contribute to the growth rate of the host economy. The impact of FDI on economic growth is influenced by the economy's institutional quality and macroeconomic policies. FDI from developed countries is associated with crowding in domestic investment, while FDI from developing countries shows no significant effect on domestic investment. The sectoral composition of FDI also affects economic growth. FDI in manufacturing has a positive and statistically significant influence on economic growth, while FDI in the tertiary sector has a statistically significant negative effect. In ASEAN countries, FDI has a significant positive relationship with economic growth in the short run, and foreign exchange reserves have a significant positive relationship with economic growth in the long run. Overall, attracting FDI, particularly in manufacturing, can contribute to economic growth.

See what other people are reading

What is quantitative correlational?
5 answers
Quantitative correlational research designs aim to explore relationships between variables without manipulation by the researcher. This type of research addresses questions about how variables are related, focusing on measuring the strength and direction of associations. In the context of high-dimensional functions, quantitative correlation inequalities provide a mathematical framework to quantify correlations between different sets of functions, such as symmetric, convex sets under Gaussian distributions. Moreover, in the field of micro-nano holography, a quantitative correlation amplitude holographic method has been developed, utilizing binary amplitude holograms and photon sieves to establish quantitative associations between holographic images. By utilizing statistical methods and mathematical frameworks, quantitative correlational research provides valuable insights into the relationships between variables in various domains.How to integrate scRNA-seq and spatial information to construct a cell graph?
5 answers
To integrate single-cell RNA sequencing (scRNA-seq) data with spatial information for constructing a cell graph, innovative computational approaches have been developed. Models like STdGCN, scSpace, SChart, and glmSMAleverage both scRNA-seq profiles and spatial transcriptomic data to map cell types, states, and phenotypes in tissues. These methods enable the reconstruction of cellular spatial structures, identification of spatially variable cell subpopulations, and accurate mapping of single cells into cellular neighborhoods and tissue structures. By combining scRNA-seq with spatial information, these approaches provide insights into spatial heterogeneity, cellular associations, and tissue development, offering a comprehensive understanding of gene expression at close to single-cell resolution within complex tissues.Why mostly of educational attainment of Brgy official is only highschool graduate and elementary level in terms of caving?
5 answers
The educational attainment of Barangay officials being predominantly at the high school graduate and elementary levels can be influenced by various factors. In Germany, the importance of formal education is highlighted, with early tracking into different school types based on recommendations and parental decisions. In India, challenges in the education system, such as poor retention rates and gender bias, can limit educational achievements. Additionally, lower educational attainment has been linked to a higher risk of developing arthritis, indicating a potential impact of health issues on educational pursuits. Educational attainment is crucial for human development, with inequalities in education reflecting broader societal disparities. These factors collectively suggest that the educational backgrounds of Barangay officials may be influenced by systemic educational challenges, health considerations, and broader socio-economic factors.What is the role of the creative economy committee in the development of a creative economy strategy?
6 answers
The role of the creative economy committee in the development of a creative economy strategy is multifaceted and pivotal for fostering sustainable growth and innovation within the sector. The committee's responsibilities include identifying and leveraging the strengths, weaknesses, opportunities, and threats inherent in the local creative economy, as evidenced by the strategic planning efforts in Banyumas Regency. This involves a deep understanding of the local and global creative economy landscape, including the recognition of creative talents and the production of creative goods and services as critical drivers of regional development. Moreover, the committee plays a crucial role in integrating culture and commerce, thereby creating a distinctive image for regions and cities and fostering an ecosystem that accommodates creators. This integration is essential for stimulating innovation, improving the quality of life, and ensuring a resilient economy capable of adapting to new conditions. The committee must also focus on the development of national strategic brands, drawing lessons from successful international examples such as South Korea's K-pop phenomenon, to enhance the reputation and attract investments. In addition, the committee is tasked with formulating policies that enhance the link between the creative economy and sustainable regional growth, emphasizing the importance of smart specialization and the entrepreneurial discovery process. It must also address the challenges posed by rapid changes and vulnerabilities in the market, as highlighted by the current COVID-19 situation, by developing innovative strategies that ensure competitiveness and inclusivity. Furthermore, the committee should facilitate the legal and financial support necessary for creative economy actors, as the lack of legality and access to capital can significantly hinder the growth of startups. Finally, it is imperative for the committee to engage in long-term strategic planning, recognizing the creative economy's potential contribution to the national economy and integrating cultural and creative dimensions into political programs. In summary, the creative economy committee is instrumental in shaping a strategic approach that fosters the growth of the creative economy through policy formulation, ecosystem development, brand strategy, and addressing market challenges, thereby ensuring sustainable and inclusive development.What are the case studies of organizational neuroscience?
10 answers
Organizational neuroscience, an emerging field that intersects neuroscience with organizational behavior, offers a rich tapestry of case studies and applications that illuminate its potential to transform workplace dynamics and management practices. One notable case study is Midas IT Co., where neuroscience principles are directly applied to human resource management, demonstrating the practical utility of the SCARF model (Status, Certainty, Autonomy, Relationship, and Fairness) in enhancing trust, satisfaction, and performance among employees. This case exemplifies how understanding the brain can lead to more effective management philosophies and practices. Further illustrating the field's application, a success story in organizational change management showcases how neuroscientific insights can mitigate the brain's alarm response to change, emphasizing the importance of managers' awareness of their impact on team climate and outcomes. Additionally, the field of neuromarketing, bolstered by corporate investments, provides another case study where a company successfully navigated selling proposition changes by analyzing sales force resistance through neurometric techniques. The burgeoning domain of organizational neuroscience also extends to industrial adaptive behavior, where neuroscience constructs are applied to explore the dynamics between adaptability and stability in competitive environments. This analysis underscores the relevance of neuroscience in understanding complex business signaling and inference processes. Moreover, organizational neuroscience's potential is further highlighted in the context of training and development, job design, high-performance assessment, motivating communications, and conflict prevention. These practical implications suggest a future where neuroscience not only informs theoretical development but also enhances the efficacy of organizational practices. Collectively, these case studies and applications underscore the transformative potential of organizational neuroscience in addressing real-world organizational challenges, from human resource management to strategic change and competitive adaptability.What is the history of organizational neuroscience?
10 answers
The history of organizational neuroscience (ON) traces its roots back to the early efforts of integrating neuroscience with management and organizational research, aiming to enhance our understanding of human behavior within organizational settings. Initially, the field emerged from the recognition that traditional organizational studies could benefit from the insights provided by neuroscience, particularly in understanding the neural underpinnings of behavior, decision-making, and interpersonal dynamics in the workplace. This interdisciplinary approach sought to leverage neuroscientific methods, such as brain imaging, to offer novel perspectives on organizational behavior. Early discussions in the field revolved around its potential to inform both academic research and practical applications in management and organizational settings. These discussions highlighted the challenges associated with collecting, integrating, interpreting, and utilizing brain-level analysis but also underscored the field's promise for theory development and practical implications. As technology advanced, making brain imaging more accessible and affordable, the application of neuroscience in organizational contexts became more feasible, further propelling the field's development. Organizational neuroscience has since expanded to include a variety of research areas, such as leadership, team dynamics, and emotional contagion, by adopting innovative approaches like the "second person" perspective. This approach emphasizes the importance of studying interpersonal interactions within organizations to gain deeper insights into organizational behavior. Moreover, the field has begun to explore the implications of neuroscience for understanding consumer behavior and marketing, thereby broadening its scope and application. Recent contributions have focused on applying neuroscience findings to address organizational challenges, such as adaptability and stability in competitive environments. This reflects a growing recognition of the value of neuroscientific insights in enhancing organizational performance and addressing complex business challenges. As organizational neuroscience continues to evolve, it holds the promise of offering more comprehensive and nuanced understandings of behavior in organizational contexts.Is higher pH better in broiler breast meat?
5 answers
Higher pH in broiler breast meat is a topic of interest due to its implications on meat quality. Research indicates that the ultimate pH (pHu) of breast meat can impact various aspects of meat quality. Studies have shown that broilers selected for a higher pHu exhibit differences in their serum lipid profiles, glycolytic potential, and muscle characteristics compared to those with lower pHu. Higher pHu is associated with lower residual glycogen and lactate content, affecting glycolytic potential and muscle blood supply, ultimately influencing meat acidity and texture. Additionally, birds with a more acidic meat (pHu-) were found to be less efficient in terms of body weight and feed efficiency compared to those with a less acidic meat (pHu+). Therefore, while higher pH in broiler breast meat may have implications on meat quality and efficiency, the specific preferences may vary based on the desired outcomes.How educations effect different income groups?
5 answers
Education plays a crucial role in influencing income levels across different socioeconomic groups. Research indicates that higher education levels are associated with lower income inequality within groups. Moreover, countries with a higher proportion of well-educated individuals tend to exhibit lower income inequality, suggesting that education can help control income disparities. Additionally, the rate of return on education is higher for groups with weaker earning abilities compared to those with stronger abilities, emphasizing the impact of education on income distribution. Therefore, education not only affects individual income but also plays a significant role in shaping income inequality within and between various income groups, highlighting the importance of educational attainment in addressing income disparities.How CagA toxin travels in helicobacter pylori type 4 secretion system?
5 answers
The transport of the CagA toxin in the Helicobacter pylori Type IV secretion system (T4SS) involves several key components. CagA is recruited to the Cag T4SS by the Cagβ ATPase, which forms a hexameric assembly with a narrow central channel requiring CagA unfolding for transport. Additionally, CagI, a protein essential for pilus formation in the Cag T4SS, interacts with adenocarcinoma gastric cells and plays a crucial role in CagA translocation. Designed Ankyrin Repeat Proteins targeting CagI inhibit CagA translocation, highlighting the significance of CagI in the process. Furthermore, a split luciferase assay has been developed to monitor the real-time translocation of CagA into host cells, confirming the importance of protein unfolding for secretion by the Cag T4SS.What are backcrosses and F2 hybrids?
5 answers
Backcrosses involve mating hybrids with one of the parental species to restore the genome of the recurrent parent, aiming to replicate the genotype of the superior parent with a targeted trait upgrade. F2 hybrids, on the other hand, result from mating F1 hybrids with each other, leading to a generation that may exhibit traits from both parental species. In backcrossing, the population structure of the recurrent parent is maintained, ensuring genetic resemblance to the superior parent, while F2 hybrids represent a mix of traits from both parental species. Backcrossing is a widely used breeding method effective for various crop species, ensuring rapid trait transfer and genome recovery of the superior parent.What are the key developments in the field of organizational neuroscience?
6 answers
The field of organizational neuroscience (ON) has seen significant developments, evolving into a flourishing scholarly domain that bridges neuroscience with management and organizational research. This interdisciplinary approach aims to inform and advance understanding in areas such as entrepreneurship, strategic management, and organizational behavior by leveraging neuroscientific methods and insights. A notable advancement is the incorporation of the "second person" approach, which emphasizes the importance of studying interpersonal dynamics within organizations through experimental settings involving two or more participants. This approach seeks to uncover the neural bases of organizational behavior by focusing on the dynamics within dyads or groups, such as leaders and followers or teams, thereby moving beyond individual-centric studies. The application of neuroimaging techniques has been identified as a crucial tool for theoretical innovation and knowledge reengineering in organizational behavior. These techniques offer a supplementary means to traditional measurement methods, playing a significant role in management model reform and theoretical progress. Furthermore, the integration of findings from neuroscience studies on adaptive behavior for ecological fitness into organizational behavior literature provides a new interpretive framework for exploring industrial adaptive behavior, highlighting the dynamics between adaptability and stability in competitive environments. Research in social neuroscience has also contributed to ON by identifying neurochemicals like oxytocin as key signals for trustworthiness within organizations. This has led to the development of neuromanagement models that aim to promote trust and prosocial behaviors within organizational cultures. Despite these advancements, the field faces methodological and analytical challenges, underscoring the need for careful and consistent critical evaluations of empirical works to ensure the reliability and trustworthiness of ON research. Looking ahead, the integration of psychological theories, such as Self-determination theory (SDT), with neuroscientific findings offers a promising direction for enhancing leadership approaches and understanding motivational factors behind leadership success. The ongoing exploration of the brain's complex functions and its implications for organizational behavior underscores the potential for future developments in ON. Collectively, these developments highlight the field's evolution and its potential to offer more comprehensive insights into organizational behavior and management practices.