- Title
- The nexus between capital inflows and credit growth in South Africa
- Creator
- Davani, Siviwe
- Subject
- Capital movements Credit
- Date
- 2019
- Type
- Thesis
- Type
- Masters
- Type
- MCom (Economics)
- Identifier
- http://hdl.handle.net/10353/16885
- Identifier
- vital:40782
- Description
- This study examines the effect of capital inflows on credit growth on the South African economy. Capital inflows ease the constraint of the low domestic savings in the domestic economy. The study employed the Structural Vector Auto Regression model to analyse the relationship between the variables of interest. The findings of the study indicate that the two types of capital inflows employed in the study, Foreign Direct Investment and Foreign Portfolio investment have a significant effect on credit growth in the long-run. The results also indicate that there are other important factors such as macroeconomic stability and political stability which have a significant effect of capital inflows into South Africa. Overall, the results revealed that a greater variation of credit growth is explained by GDP. This indicates that there is a link between GDP and FDI and FPI given their link with credit growth. These results also suggest that the foreign capital channel can be another channel which may affect growth in the domestic economy in the event that there are negative innovations which affects capital flows to South Africa. The study thus suggests that policies which ensures macroeconomic stability and political stability should be pursued given their influence on capital inflows into South Africa. Also it’s recommended that the country mobilise domestic resources to ensure sustainable development
- Format
- 112 leaves
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
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UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | DAVANI S 201304419_MCOM.pdf | 2 MB | Adobe Acrobat PDF | View Details |