Sisinyana, Matolweni Nomutshetshi2025-06-232025-06-232015Sisinyana,M.N.(2015).The relationship between foreign direct investment and economic growth: A South African case study.Alice: University of Fort Harehttp://hdl.handle.net/20.500.11837/2904Masters ThesesThis study investigates the relationship between Foreign Direct Investment and economic growth in South Africa over the period of 1990-2012 with quarterly time series data being employed in the study. Since theory suggests a positive long-run relationship between Foreign Direct Investment and economic growth, it is crucial to examine whether Foreign Direct Investment has played a role in increasing economic growth of South Africa. The current study employed the Romer (1990) endogenous growth theory in order to explain how Foreign Direct Investment contributes to economic growth of South Africa. The Johansen test of co integration was employed by the current study to determine any presence of a long-run relationship between Foreign Direct Investment and economic growth in South Africa. According to the cointegration results of the current study, the presence of cointegration between Foreign Direct Investment and economic growth was found to exist and as a result the Vector Error Correction Model (VECM) was estimated.enSOCIAL SCIENCES::Business and economicsThesis