Does Foreign Direct Investment Crowd in or Crowd out Domestic Investment in South Africa? An ARDL-ECM Approach
Journal: Preprints.org
Year: 2022

The aim of this study is to empirically examine the link between foreign direct investment (FDI) and domestic investment (DI) in South Africa over the period of 41 years (1975-2016). Accurately, it attempts to determine whether FDI crowds in or crowds out DI in South Africa. DI is sub-divided into private domestic investment (credit to domestic private sector) and public corporation investment (state owned enterprises). We used the Autoregressive Distributed Lag-Error Correction Model (ARDL-ECM)