- Title
- The nexus between capital inflows, financial sector development and domestic investment in selected southern African development community countries
- Creator
- Zulani, Sihle https://orcid.org/0009-0006-7067-5793
- Subject
- Capital movements -- Africa, Southern
- Subject
- Saving and investment -- Africa, Southern
- Subject
- Financial services industry -- Africa, Southern
- Date
- 2023-03
- Type
- Master's theses
- Type
- text
- Identifier
- http://hdl.handle.net/10353/28872
- Identifier
- vital:75154
- Description
- The study seeks to examine the nexus between foreign capital inflows as proxied by foreign direct investment and overseas development assistance, financial sector development as measured by domestic credit to private sector and broad money supply (M3) and domestic investment [gross fixed capital formation] in selected Southern African Development Community (SADC) countries. Panel data model, specifically the panel Autoregressive Distributed Lag technique given the order of integration of the variables utilised in the study was employed from 1980 to 2019. The results revealed that there is cointegration among the variables utilised. After confirming cointegration, the long-run and short run models were estimated to establish the relationship between the variables. The long-run results revealed that about 67% of domestic investment in the SADC region is generated through foreign direct investment. These results suggest that domestic investment is boosted by foreign direct investment in the SADC region. However, financial sector development was found to have a negative effect on domestic investment in the SADC region. The findings from this study suggest that countries should pursue policies aimed at attracting FDI into the SADC region given the positive effect it has on investment. On the part of financial sector development, this could be attributed to the sector not supporting most of the domestic investment given that most of them are small and do not access bank finance.
- Description
- Thesis (MCom) -- Faculty of Management and Commerce, 2023
- Format
- computer
- Format
- online resource
- Format
- application/pdf
- Format
- 1 online resource (102 pages)
- Format
- Publisher
- University of Fort Hare
- Publisher
- Faculty of Management and Commerce
- Language
- English
- Rights
- rights holder
- Rights
- All Rights Reserved
- Rights
- Open Access
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Collections
UFH Department of Economics
| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details Download | SOURCE1 | Zulani_201312291_Economics.pdf | 1 MB | Adobe Acrobat PDF | View Details Download |