Department of Economics

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Browsing Department of Economics by Author "Chamangwana, Millicent R"

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    Impact of Foreign Direct Investment on Export growth of the host country: A case study of South Africa
    (University of Fort Hare, 2015) Chamangwana, Millicent R
    This study attempts to establish the relationship between Foreign Direct Investment and the export growth in South Africa. The link between Foreign Direct Investment and export growth is well documented in the literature and econometric techniques using data from 1978-2010 are utilised to investigate in the case of South Africa. Johansen Co-integration Techniques and the Error Correction Method for long-run and short-run analyses respectively have been applied. After considerable evaluation it is established that indeed Foreign Direct Investment plays an important role in export growth as two equations are estimated, one with the stock of FDI and one without. Results show that when the stock of FDI is added it has supply-increasing effects on exports.