<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This study sought to contribute to the growing empirical literature by investigating the effects of FDI on per capita GDP growth for South Africa using time series data collected between 1970 and 2016. Compared to the majority of previous studies, we use quantile regressions which investigates the effects of FDI on economic growth at different distributional quantiles. Puzzling enough, the empirical results show that FDI has a negative influence on welfare at extremely low quantiles whereas at other levels this effect turns insignificant. Contrary, the effects of domestic investment on welfare is positive and significant at all levels. Collectively, these results have important implications for policymakers in South Africa.</p></abstract>

This study sought to contribute to the growing empirical literature by investigating the effects of FDI on per capita GDP growth for South Africa using time series data collected between 1970 and 2016. Compared to the majority of previous studies, we use quantile regressions which investigates the effects of FDI on economic growth at different distributional quantiles. Puzzling enough, the empirical results show that FDI has a negative influence on welfare at extremely low quantiles whereas at other levels this effect turns insignificant. Contrary, the effects of domestic investment on welfare is positive and significant at all levels. Collectively, these results have important implications for policymakers in South Africa.

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

Studia Universitatis Babes-Bolyai Oeconomica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

This study sought to contribute to the growing empirical literature by investigating the effects of FDI on per capita GDP growth for South Africa using time...

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

Published Online: Mar 12, 2019

Page range: 33 - 55

DOI: https://doi.org/10.2478/subboec-2018-0013

Keywords
FDI, Economic growth, Quantile regression, Global financial crisis, South Africa

© 2018 Hlalefang Khobai et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The FDI-Growth Nexus in South Africa: A Re-Examination Using Quantile Regression Approach

Published Online: Mar 12, 2019

Page range: 33 - 55

DOI: https://doi.org/10.2478/subboec-2018-0013

KeywordsFDI, Economic growth, Quantile regression, Global financial crisis, South Africa

© 2018 Hlalefang Khobai et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
FDI, Economic growth, Quantile regression, Global financial crisis, South Africa