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Does corruption hampers inward FDI in South Africa from other African countries? a gravity model analysis

Author

Listed:
  • Mosikari, Teboho Jeremiah
  • Nthebe, Tselane Confidence
  • Eita, Joel Hinaunye

Abstract

The purpose of this paper is to investigate the relationship between corruption and FDI inflows from other African countries to South Africa. The study uses gravity model and employs panel data econometric technique such as pooled, fixed and random effects model. The results indicate that there is a significant negative relationship between corruption and FDI inflows from other African countries to South Africa. This implies that policy makers in South Africa should implement measures to curb corruption. This will help in attracting FDI inflows from other African countries and encourage the creation of job opportunities.

Suggested Citation

  • Mosikari, Teboho Jeremiah & Nthebe, Tselane Confidence & Eita, Joel Hinaunye, 2018. "Does corruption hampers inward FDI in South Africa from other African countries? a gravity model analysis," MPRA Paper 88735, University Library of Munich, Germany, revised 10 Jul 2018.
    • Handle: RePEc:pra:mprapa:88735
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    References listed on IDEAS

    as
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    5. Cristina Mihaela Amarandei, 2013. "Corruption And Foreign Direct Investment. Evidence From Central And Eastern European States," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 5(3), pages 311-322, September.
    6. Rahim M. Quazi, 2014. "Corruption and Foreign Direct Investment in East Asia and South Asia: An Econometric Study," International Journal of Economics and Financial Issues, Econjournals, vol. 4(2), pages 231-242.
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    More about this item

    Keywords

    Corruption; FDI inflows; Panel gravity model;
    All these keywords.

    JEL classification:

    • B40 - Schools of Economic Thought and Methodology - - Economic Methodology - - - General
    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F2 - International Economics - - International Factor Movements and International Business

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