JOURNAL ARTICLEDintuku Maggie Kgomo · Stephen Zhanje
International Journal of Research in Business and Social Science · 2024
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Global trade has significantly expanded over the past thirty years in both developed and emerging economies, a phenomenon assisted by advancements in transportation, telecommunications, and industry. Extensive trading fosters financial links between national economies, hence promoting economic progress. This article aims to investigate the interrelationship among foreign direct investment, trade, and South Africa's economic growth. Econometric techniques, including the autoregressive distributed lag bound test, were used to annual data from 1988 to 2022. The findings indicated that economic growth is positively affected by foreign direct investment and exports in both the short and long term. This indicated that foreign direct investment and exports are substantial contributions to economic growth.This analysis indicates that both foreign direct investment (FDI) and trade significantly impact the macroeconomic environment and influence economic growth. Developing countries such as South Africa must use diverse strategies to guarantee elevated rates and quality of economic growth. Improvements in the investment climate and the establishment of incentives are necessary to enable the equitable allocation of resources across various sectors to address employment challenges, poverty rates, and the maintenance of growth. Export-oriented strategies should be adopted. Therefore, it is essential to analyse the determinants of economic growth by examining foreign direct investment and trade in the context of South Africa, particularly in relation to the country's performance as measured against the National Development Plan targets since the post-1994 period.
DOI 10.20525/ijrbs.v13i7.36510 Crossref citations0 OpenAlex citations
JOURNAL ARTICLEInnocent Wabwile · Umulkher Abdillahi Ali · Edwin Jairus Simiyu · Consolata Ngala
International Journal of Finance & Banking Studies · 2024
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Kenya has historically been one of Africa's top destinations for foreign direct investment. Foreign direct investment is critical for Kenya's agricultural sector, offering capital, technology transfer, and skill development that enhance productivity and economic growth. Despite agriculture being a primary economic driver, challenges such as limited capital, outdated farming techniques, and insufficient infrastructure continue to hinder growth. The research explores the contribution of foreign direct investment on agricultural productivity in Kenya as well as to assess the effect of foreign direct investment on the productivity levels of small-scale and large-scale farmers in Kenya for a period 1993 to 2022. Neoclassical growth theory, Endogenous theory were key in guiding the study. This study adapted the causal research design employing time series data from World Bank spanning from years 1993 to 2022. Data was analyzed the data both descriptively and by inferential statistics. The findings of correlational analysis revealed a moderate positive relationships (r= 0.3213) between Foreign direct investment and agricultural productivity. Multiple regression analysis confirmed the significant positive effect of foreign direct investment on agricultural productivity with a coefficient of 0.3661 and p value 0.0014<0.05. This signifies that, in the short term, a 1% increase in foreign direct investment results in a 36.61% rise in the growth of Agricultural productivity, assuming all other variables remain constant. The findings implied that foreign direct investment inflow has the ability to create employment, technological development and improve access to international markets playing a pivotal role in accelerating the agricultural productivity. The Kenyan government should have more effective foreign direct investment strategies to facilitate technology transfer agreements between foreign investors and local agricultural enterprises, additionally, the government should pursue macroeconomic policies that attract foreign direct investment by providing an investor-friendly environment.
DOI 10.20525/ijfbs.v13i4.37364 Crossref citations3 OpenAlex citations
JOURNAL ARTICLERefilwe Maduane-Komape · Makgopa Tshehla
International Journal of Research in Business and Social Science · 2024
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There is a limited amount of literature and data available on the topic of foreign divestment in African countries. The majority of research examining international divestment have primarily concentrated on a single-country context and have utilised factors at the level of individual firms. Unlike other papers, this study took a comprehensive approach by examining foreign divestiture across multiple countries on a continental scale. We analyse the correlation between foreign divestment, financial development, and economic growth over both short and long periods using annual data from 2000 to 2020 in 35 African nations. The principal estimating technique employed was the autoregressive distributed lag (ARDL) co-integration approach. The study's primary findings revealed a favourable enduring correlation between foreign divestiture and financial development, while indicating an unfavourable enduring correlation between foreign divestment and economic growth. Furthermore, the study found that there is a negative correlation between international divestiture and financial development in the short term. On the other hand, there is a positive and significant correlation between foreign divestment and economic growth. Thus, it is imperative for policymakers to implement rules with efficiency and promote foreign direct investment (FDI) inflows in order to enhance economic growth and development in African countries. Additionally, it is imperative for authorities to establish a surveillance system to monitor these connections and adapt policy accordingly in light of evolving economic conditions. The results of this study will not only enhance scholarly discussions, but also offer valuable insights to policymakers, practitioners, businesses, and foreign investors on how to effectively execute policies that promote economic growth and foreign investment in Africa. Moreover, this study provides suggestions for future investigations in the field of foreign divestment.
DOI 10.20525/ijrbs.v13i3.32383 Crossref citations3 OpenAlex citations