- Title
- The impact of portfolio investment on economic growth in South Africa
- Creator
- Tenderere, Morris
- Subject
- Investments, Foreign -- South Africa
- Subject
- Portfolio management
- Subject
- Capital market
- Date
- 2015-01
- Type
- text
- Identifier
- http://hdl.handle.net/10353/25603
- Identifier
- vital:64338
- Description
- The main objective of this study was to investigate the impact of foreign portfolio investmenton economic growth in South Africa. South Africa, just like other several developing countries has recorded large capital inflows in recent years, reversing a trend of outflows. Much of this new capital inflow has been in the form of portfolio investment. This has been attributed to large domestic capital markets in South Africa. This surge in portfolio flows has raised the question whether these flows will be sustained or will instead be reversed in the near future. Some observers argue that the recent flows are inherently unsustainable because in many cases they have short maturities. In light of this, this study, then, sought to establish the impact of portfolio investment on economic growth in South Africa. The study used annual data from 1990 to 2012. The data was tested for stationarity using the Phillips Perron and Augmented Dickey–Fuller tests. This was followed by cointegration, after which thevector error correction modelling was carried out. Diagnostic checks, impulse response and variable decomposition were also conducted. Estimation results revealed that there is a positive relationship between foreign portfolio investments and economic growth in South Africa. The study recommended that the SARB and the government should remove all impediments that make it hard for foreign investors to invest in South Africa. The SARB should also keep interest rates at a rate that is high enough to attract foreign portfolios into South Africa.
- Description
- Thesis (MCom) -- Faculty of Management and Commerce, 2015
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (83 leaves)
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- University of Fort Hare
- Rights
- All Rights Reserved
- Rights
- Open Access
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UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | FINAL MASTERS pdf.pdf | 731 KB | Adobe Acrobat PDF | View Details |