- Title
- The nexus between oil prices, exchange rate and foreeign direct investment in South Africa
- Creator
- Mapanzure, Rufaro
- Description
- The 2000 to 2020 relationship between oil prices, exchange rates, and foreign direct investment (FDI) in South Africa presents a fascinating case in the global economics. Noteworthy is that this period is marked by some important geopolitical events, technological advancements, and economic shifts that provide a rich ground for analyzing how these three critical factors interact in an emerging country. South Africa, with its unique economic and political landscape, offers an exemplary context for exploring the dynamics of these variables and their collective impact on the nation's economic health and growth. This study conducted an empirical analysis to investigate the association of oil prices, exchange rates, and foreign direct investment (FDI) in South Africa from 2000 to 2020. The research applied the autoregressive distributed lag bounds technique (ARDL) after initial unit root tests indicated different orders of integration (1(0) and 1(1)) for the variables. The results align with the risk aversion theory, revealing a significant and negative relationship between exchange rates and foreign direct investment in the long-term. Conversely, the interaction term EXCH_OIL, interest rates, and inflation demonstrated a significant and positive relationship with foreign direct investment in both the short-run and the long-run. The Granger causality test identified a unidirectional causality from foreign direct investment to exchange rates. This study recommends implementing policies aimed at stabilizing oil prices and exchange rates to entice foreign investment into South Africa.
- Description
- Thesis (Masters) -- Faculty of Economic and Financial Sciences, 2023
- Date
- 2023-00
- Subject
- Direct Marketing
- Type
- Masters theses, text
- Identifier
- http://hdl.handle.net/11260/10126
- Identifier
- vital:74939
- Format
- computer, online resource, application/pdf, 1 online resource (102 pages), pdf
- Publisher
- Walter Sisulu University, Faculty of Economics and Financial Sciences
- Language
- English
- Rights
- Faculty of Economic and Financial Sciences, All Rights Reserved, Open Access
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| Thumbnail | File | Description | Size | Format | |||
|---|---|---|---|---|---|---|---|
| View Details | SOURCE1 | Mapanzure, R. EFinal dissertation dissertation.pdf | 1 MB | Adobe Acrobat PDF | View Details |