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The relationship between foreign direct investment and economic growth in SADC region from 2000 to 2019: An econometric view

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  • Hlongwane, Nyiko Worship
  • Mmutle, Tumelo Donald
  • Daw, Olebogeng David

Abstract

This study investigates the relationship between foreign direct investment and economic growth in SADC region from 2000 to 2019. The study utilises panel data spanning from 2000 to 2019 sourced from the World Bank. The study employs a panel ARDL and panel Error Correction Model to analyse the relationship between foreign direct investment and economic growth in SADC region. The statistical results revealed a positive statistically significant short run relationship and negative statistically significant long run relationship between foreign direct investment and economic growth.

Suggested Citation

  • Hlongwane, Nyiko Worship & Mmutle, Tumelo Donald & Daw, Olebogeng David, 2021. "The relationship between foreign direct investment and economic growth in SADC region from 2000 to 2019: An econometric view," MPRA Paper 111008, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:111008
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    More about this item

    Keywords

    Foreign Direct Investment (FDI); Economic Growth; Error Correction Model; SADC; Panel ARDL model;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • E41 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Demand for Money
    • F15 - International Economics - - Trade - - - Economic Integration
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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