Home » What determines FDI inflow into South Africa?

What determines FDI inflow into South Africa?

The research is to study the determinants of FDI in South Africa. The aim of this research
report is to provide information on how the study is going to be conducted. The proposal is
organised as follows, the first section presents context and background of the study. The
second section sets out the statement of the problem. Sections three and four presents the
objectives of the study and research question or hypotheses of the study respectively. Then,
fifth and six sections present the significance of the study and the outline of the study.
Literature review will be presented in section seven. Finally, research methodology is
presented at the end of the chapter.
Investments are the engine of economic growth (Liesbeth et al., 2009) and human
development (Torabi, 2015), due to that it is an effective means to increase wealth in national
economy. Amongst the multiple investments, foreign direct investment (FDI) has a vital
influence on the economic growth of a nation, as a condition to attract investors to develop
and improve the economy and the quality of human resources (Simionescu & Naros, 2019).
Every economy requires foreign direct investment, as it brings in new money to boost the
economy. In its simplest terms, foreign direct investment is acquiring or purchase of an
interest or stake in a firm by a company or an investor located outside its borders. Commonly,
the term is used to explain a business decision to acquire a substantial interest or stake in a
foreign entity or to buy it absolutely in order to expand its operations to a new region. FDI
brings new jobs and more opportunities as investors build new companies in foreign
countries. This can lead to an increase in income and more purchasing power to locals, which
in turn leads to an overall boost of economies. With more mineral deposits being found every
day, Africa has been a huge recipient of FDI, with foreign investors trying to maximise on
abundant mineral resources. PWC South Africa noted that FDI is needed in order to stimulate
economic growth and financial sustainability. However, different scholars have pointed out at
the need for African countries not to hedge on natural resources only to attract FDI. Morisset
(2000) stresses out that African countries have the capacity to be successful in attracting FDI
that is not based on natural resources but rather at regional and global markets, by improving
their business climate.

According to Moreira (2009), in order to improve the climate for FDI, an econometric
analysis for 29 African countries over the period 1990‐97 was made and it indicated that
GDP growth rate and trade openness can be used to increase the interest of foreign investors.
Furthermore, a thorough review of the policy reforms implemented in Mozambique and Mali
indicated that the following strategic actions for their recent success, beyond macroeconomic
and political stability; opening the economy through a trade liberalization reform, launching
an attractive privatization programme, modernizing mining and investment codes and
adopting international agreements related to FDI.
2.0 Problem Statement
Foreign direct investment is anchored on a number of factors. In South Africa a number of
factors affect its inflow. In 2019 FDI inflows were US$4.6billion and they fell to
US$2.5billion in 2020. This however was attributed to the global FDI reduction of 42
percent. This shows how different determinants can affect the inflow of FDI into the country.
Natural resources, good economic policies, GDP, openness, inflation, exchange rate,
corporate tax are among factors that determine the inflow of FDI. The research looks to
clarify the significancy of factors that contribute to FDI inflow. This is important to
understand as FDI has an impact on the country’s economic growth. Therefore understanding
its movement and determinants helps in creating a better environment for an increase in
foreign capital.
3.0 Objectives of the Study
To investigate the determinants of FDI inflow into South Africa
To determine the significance of different factors that affect FDI inflow into South Africa
To assess the relationship between economic growth and FDI
To assess the impact of FDI on economic growth
4.0 Research question/hypothesis
4.1 Research questions
i. What determines FDI inflow into South Africa?
ii. How significant are FDI determinants in attracting FDI?
iii. Does FDI has an impact on economic growth in South Africa?

Don't use plagiarized sources. Get Your Custom Essay on
What determines FDI inflow into South Africa?
Just from $9/Page
Order Essay

4.2 Research Hypothesis
This study is based on the hypothesis shown below:
H 0 : There is a positive relationship between FDI and economic growth.
H 1 : There is no relationship between FDI and economic growth.
5.0 Significance of the study
The country’s economic growth has been sluggish over the last 10years. Different theories
are always put in front for the reason for poor growth, and FDI is one of the factors that is put
in front by different scholars. This research is important as it would best describe how FDI
relates to economic growth. It would also investigate into what affects FDI that indirectly
deems to affect the economic growth of the country. Through this study, it can be added upon
and used by other scholars, economic students or government officials who can come up with
extensions to this study so as to combat the sluggish economic growth.

Get Professional Assignment Help Cheaply

Buy Custom Essay

Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?

Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.

Why Choose Our Academic Writing Service?

  • Plagiarism free papers
  • Timely delivery
  • Any deadline
  • Skilled, Experienced Native English Writers
  • Subject-relevant academic writer
  • Adherence to paper instructions
  • Ability to tackle bulk assignments
  • Reasonable prices
  • 24/7 Customer Support
  • Get superb grades consistently

Online Academic Help With Different Subjects


Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.


Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.

Computer science

Computer science is a tough subject. Fortunately, our computer science experts are up to the match. No need to stress and have sleepless nights. Our academic writers will tackle all your computer science assignments and deliver them on time. Let us handle all your python, java, ruby, JavaScript, php , C+ assignments!


While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.


Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.


In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.


Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.


We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!


We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.


Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.

What discipline/subjects do you deal in?

We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.

Are your writers competent enough to handle my paper?

Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.

What if I don’t like the paper?

There is a very low likelihood that you won’t like the paper.

Reasons being:

  • When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
  • We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.

In the event that you don’t like your paper:

  • The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
  • We will have a different writer write the paper from scratch.
  • Last resort, if the above does not work, we will refund your money.

Will the professor find out I didn’t write the paper myself?

Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.

What if the paper is plagiarized?

We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.

When will I get my paper?

You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.

Will anyone find out that I used your services?

We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.

How our Assignment Help Service Works

1. Place an order

You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.

2. Pay for the order

Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.

3. Track the progress

You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.

4. Download the paper

The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.

smile and order essay GET A PERFECT SCORE!!! smile and order essay Buy Custom Essay

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!
Open chat
Need assignment help? You can contact our live agent via WhatsApp using +1 718 717 2861

Feel free to ask questions, clarifications, or discounts available when placing an order.
  +1 718 717 2861           + 44 161 818 7126           [email protected]
  +1 718 717 2861         [email protected]