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Foreign direct investment and economic growth in SADC countries: A panel data analysis

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dc.contributor.advisor Gyekye, A. B.
dc.contributor.advisor Dafuleya, G.
dc.contributor.author Mugowo, Onias
dc.date.accessioned 2017-11-14T09:42:37Z
dc.date.available 2017-11-14T09:42:37Z
dc.date.issued 2017-09-18
dc.identifier.uri http://hdl.handle.net/11602/961
dc.description MCOM
dc.description Department of Economics
dc.description.abstract The study aimed to empirically examine the impact of foreign direct investment on economic growth in the Southern African Development Community countries for the period 1980-2015. The relation between foreign direct investment and economic growth has been a subject of extensive discussion in the economic literature. The debate revolves around the growth implications of foreign direct investment. The extraordinary increase in global FDI flows in the last three decades triggered an interest to investigate the growth implications of such huge amounts of cross-border capital movements. Owing to this surge in foreign direct investment flows and the effort countries are putting forth to attract it, it would seem straightforward to argue that foreign direct investment would convey net positive effects on economic growth of a host country. From a theoretical standpoint foreign direct investment has been shown to boost economic growth through technology transfer and diffusion. In light of the expected benefits of foreign direct investment, many empirical studies have been conducted on this subject matter. While the explosion of foreign direct investment flows is distinctive, the evidence accumulated on the growth effects remains mixed. Using fixed effect panel data analysis, on the overall, the findings of the study show a negative effect of FDI on economic growth in the SADC countries for the period 1980 to 2015. The findings are not in tandem with theoretical predictions from growth theorists and some empirical studies carried out on the same topic. The findings of the study imply that FDI does not seem to have an independent effect on economic growth for the panel of countries in the SADC region. This maybe because FDI flows to Africa and into the SADC countries, in particular, are channelled mainly to the extractive sector with little to no linkages with the other sectors of the host country economy. The findings of the study also show that the growth-enhancing potential of FDI is higher in middle-income countries than low-income countries in the SADC region. en_US
dc.format.extent 1 online resource (xiii, 88 leaves : color illustrations)
dc.language.iso en en_US
dc.rights University of Venda
dc.subject Foreign Direct Investment en_US
dc.subject Economic growth en_US
dc.subject Panel data anaysis en_US
dc.subject Southern African Development Community (SADC) en_US
dc.subject.ddc 338.968
dc.subject.lcsh Africa, Southern -- Economic conditions -- 1994-
dc.subject.lcsh South Africa -- Economic condtions -- 1994-
dc.subject.lcsh Investments, Foreign -- Africa, Southern
dc.subject.lcsh Investments, Foreign -- South Africa
dc.subject.lcsh Investments -- South Africa
dc.subject.lcsh Investments -- Africa, Southern
dc.title Foreign direct investment and economic growth in SADC countries: A panel data analysis en_US
dc.type Dissertation en_US

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