M.Phil. (Mineral Economics) / The energy crises in the seventies and eighties had led to an awareness in the world's business community about the profit potential in the energy mineral supply market. All the sectors in this industry came under scrutiny, also the coal export sector. This awareness and rising interest in the world's coal export market caused amongst others, two major developments : a) a significant rise in investments in coal exporting ventures b) a higher expectation by shareholders with respect to capital returns and future growth Most companies participated in this expansion campaign, and committed resources to achieving the higher objectives. The downturn in'the world's economy , and the resultant diminished demand for energy minerals, caused the coal export market to come under pressure. The long lead time existing in the establishment of mining projects, and the fact that mines under construction cannot be mothballed until times improve, also contributed to the over-capacity situation that eventuated in the coal export industry worldwide. Many companies faced a battle for survival, and participants in the industry had to re-appraise their long term strategies. Established coal producing companies had to determine which strategies would best answer their requirements : a) whether it be to divest from coal production b) whether they should diversify their operational base and many others...

M.Sc. (Mining Engineering), Faculty of Engineering, University of the Witwatersrand, 1995

Foreign Direct Investment (FDI) is a powerful driver of economic growth and development, particularly in the developing world. FDI can lead to greater efficiencies in the local economy through a number of different channels such as the transfer of technology, increase in competition, and job creation. This dissertation discusses the costs and benefits derived from FDI as well as examining various complementary issues to FDI, such as the relevance of fiscal incentives and the varying effects of different modes of entry. This study further analyses the determinants of FDI into South Africa for the period 1961-2009, through the use of two different econometric techniques – time series and panel data analysis. The results from the time series analysis concur largely with previous studies, finding market size, exchange rate, macroeconomic (in)stability and infrastructure to all be statistically significant determinants of FDI inflows into South Africa. South Africa underwent a major political and economic change in 1994 with the end of Apartheid. This fundamental shift in the economy has also affected the determinants of FDI into the country. To this end a panel data analysis was conducted between 1994 and 2009, the results of which are more suitable for forecasting. This analysis found similar results to the time series analysis, although the relative importance of the determinants varies somewhat, and two additional variables – education and labour productivity – were also found to be statistically significant determinants in the panel data analysis. The dissertation concludes by discussing the policy implications that derive from the findings of the econometric analysis and offers some policy advice in terms of attracting greater FDI into South Africa, based on the findings of this analysis. / Thesis (M.Com.)-University of KwaZulu-Natal, Pietermaritzburg, 2011.

In order to become globally competitive, South Africa has embarked on an industrial development zone (IDZ) programme to boost investment, increase the socio-economic climate, attract world-class manufacturers and generate local and foreign direct investment (FDI) while creating employment, encouraging skills and technology transfer, and increasing foreign exchange earnings. Twelve strategic areas within South Africa have been identified and are in the process of, or have been, declared IDZs. East London and Coega are the first two IDZs to come online in South Africa and have generated much publicity in the past number of years. One of the aims of the IDZs, as world-class production areas, is to generate FDI. Drivers of international FDI include globalisation, political, economic and legal environments and competitive advantage. According to the United Nations Conference on Trade and Development (2002: 25), FDI accounts for 16 percent of worldwide gross fixed capital formation – and a growing proportion of this is going to developing nations. According to the World Economic Processing Zones Association (WEPZA), IDZs have been the star performer in attracting investment and technology to developing countries during the past 50 years (2002: www.wepza.org). If the Eastern Cape IDZ programme is to be a success, the development corporations that have been established as the management arms of the IDZs will need to facilitate strategic economic advantage, look towards strategic investments that are sustainable, take advantage of and grow existing industrial capacity and create economic and social benefits for the region. There are a number of dynamics and reasons behind global FDI decisions. In order to be successful at attracting FDI the development corporations need to understand these dynamics and reasons in order to achieve a strategic fit between potential investor and the IDZ. This can be done by adopting a strategic management model for greenfield FDI from international investors.

M.Comm. / The objective of this thesis is to examine the importance of external finance of economic development and growth in South Africa. The investigation takes cognisance of the unique characteristics of the South African economy, especially the years of isolation from the world economy, unequal distribution of income and the need for sustainable economic growth to create employment and thus a stable social and economic environment conducive to foreign investment. The inflow of foreign capital in the economic development process is an imperative for filling either the investment-savings gap or the import-export gap. In a closed economic system the demand for investment funds will be met by the supply of domestic savings. Economic growth will be limited to the availability of investment funds, or domestic savings. In an open economic system, the demand for investment funds can be supplemented by the inflow of foreign capital, and growth will thus not be impaired by a scarcity of investment resources. Foreign capital inflows formed an integral part of the economic development process in the South African economy since the discovery of gold and diamonds in the latter half of the nineteenth century. Until 1976, in 24 out of 31 years, the South African economy recorded a net inflow of foreign capital. South Africa could, until 1976, the year in which political and social unrest broke out, finance a shortfall on the current account of the balance of payments with the inflow of foreign capital. Since then South Africa became a net exporter of capital. The South African economy found itself isolated from the world economy since the middle eighties due to the Apartheid policy. The inflow of foreign capital was greatly inhibited by sanctions and disinvestment. The South African economy had to rely on domestic savings to finance investment needs. This shortage of investment funds was an inhibiting factor on economic growth and development. This dissertation distinguishes between the different developing funding sources and as such outlines the benefits of using both multilateral as well as bilateral developing funding institutions to enhance and foster economic growth and development, especially in developing countries. It also gives a historical overview of South Africa's relationships with and use of these institutions. The reintegration of Eastern Europe into the world economy meant even bigger pressure on existing development funds. Since the early nineties funds available to the Third World for economic development have been steadily declining. New sources of funds for economic development had to be found. The emphasis has been moving away from pure development assistance and grants to direct foreign investment as a means of financing development in the developing world.

Foreign Direct Investment (FDI) has been perceived by most developing countries, emerging economies and countries in transition as a major vehicle for development that would not only boost a host country’s economic development but also enhance its integration into the global economy. The common assumption is that presence of foreign companies in a host country, particularly a developing country, would lead to economic benefits; among them, transfer of technology, and skills and human capacity development. The establishment of special “development zones” and the roll-out of incentives to attract FDI are often predicated on the expectation by host countries that these benefits would be achieved. It is against this background that this study sought to find out the character of FDI in the East London Industrial Development Zone (ELIDZ), located in the Eastern Cape. The study focused on the institutional preconditions and incentives used by the ELIDZ to attract FDI into the zone, and on whether these had any bearing on labour and environmental standards as well as on local skills development. Empirical data for the study were collected using in-depth interview with senior management staff of both the ELIDZ as an organisation, and one of the foreign companies located in the zone (a “tenant” of ELIDZ). In addition, a mini survey was conducted with a random sample of employees of the selected ELIDZ company. Among the key findings of the study was that the ELIDZ had in place a range of incentives and preconditions for the attraction of FDI, and that there were concerted efforts on the part of ELIDZ management to compel companies operating in the zone to adhere to specific iv standards – especially on the environmental front. From the mini survey results, however, the study established that achievements on the labour front were mixed. While most of the responses indicated that ELIDZ was playing a positive role in terms of employment creation, a high number of responses (from surveyed employees in the selected ELIDZ company) pointed out that employment standards were in question. For example, 41% of respondents reported “unhappiness” with their conditions of employment, while 50% deplored the fact that they were not allowed to belong to unions. Furthermore, responses were nearly evenly split (53%/47%) between those who reported that their employment had resulted in the acquisition of new skills and those who reported that it had not. From these and other findings, the study concluded that ELIDZ was facing a “balancing act” by expecting foreign companies to create jobs, transfer technology and contribute to local skills development while at the same time adhering to strict environmental and labour standards. The study thus confirmed a major consensus in the FDI literature, while FDI could bring about important socio-economic achievements in a host country, foreign companies and host governments are not necessarily motivated by the same set of factors. Indeed, at least a small facet of the study’s findings seemed to confirm the well-documented anti-FDI sentiment that the faith placed in FDI by host governments (especially in developing countries) does not always have a sound basis.

Empirical evidence and theoretical propositions suggest that financial development is strongly correlated to private investment because financial development positively affects investments by affecting capital accumulation, altering savings rate or by channelizing savings to various capital producing technologies. This study empirically investigated the impact of financial development on private investment in South Africa using quarterly data for the period 1994/01 to 2011/04. This study assess whether the theoretical and empirical propositions can be supported in South Africa. Cointegration tests using the Johansen approach (1988) were conducted to examine if there is a stable relationship in the level of private investment and financial development in South Africa. As a proxy for financial sector development, credit to private sector as per cent of GDP and stock market development were employed. Other variables that affect investment such as real interest rates and real GDP were also included in the model. Results of the study indicate that stock market development and real GDP have a positive relationship with private investment. Bank credit to the private sector however showed a negative relationship with private investment. A negative relationship was also noted for the relationship between private investment and real interest rates.

Foreign direct investment amongst other mechanisms provides capital inflow meant to stimulate economic growth. Apart from promoting economic growth, FDI can also lead to increase in employment, technology, technical knowhow and managerial skills. South Africa has implemented various policy initiatives in attempts to attract foreign investment. This study investigates on the effect of foreign direct investment on economic growth, with particular reference to the South African economy. The period of study is from 1980 to 2010. The study begins by reviewing literature on economic growth and foreign direct investment. South Africa’s macroeconomic background is examined to determine the trends in FDI inflows and economic growth. An empirical model linking theoretical and empirical literature on the effect of FDI on economic growth is estimated using the Johansen cointegration and VECM framework. Variables specified in the methodology include real gross domestic product (RGDP), foreign direct investment (FDI), domestic investment (INVE), real exchange rate (REXCH) and foreign marketable debt (DEBT). The long run results showed that FDI, REXCH and DEBT have a negative impact on growth. INVE has a positive impact on growth. Short run results indicated that there is no strong pressure on RGDP to restore long-run equilibrium whenever there is a disturbance. The short run lag of FDI was found to exert a positive impact on growth. The impulse response and variance decomposition analysis complemented the long and short-run findings. Shocks on REXCH, and DEBT generated a negative response on RGDP. The shocks were not significantly different from zero and were transitory. Results from the variance decomposition analysis revealed that the fundamentals explain some, but not all, of the variations of RGDP. For the fifth year forecast error variance RGDP explains the largest component of the variation followed by INVE, REXCH, FDI and DEBT. After a period of ten years, the influence of RGDP and INVE declines, whereas REXCH, FDI and DEBT increase. Conclusions and policy recommendations were made using these results.

This study critically explores the link between internationalisation theories and outward foreign direct investment (FDI) – a linkage which is well documented in the literature. Numerous studies have established that the internationalisation process recognises both firm- and market-specific aspects, which greatly determine the direction of outward FDI in terms of volume and pattern. In this interaction, path dependency is determined by the intensity of overlapping aspects or linkages, from firm-level heterogeneity and host market aspects that direct investment patterns in terms of the latter, to the volumes of firm-level adjustments. Firm-level heterogeneity comprises those traits, which enable an individual firm to make an investment decision, select a market-entry strategy and create the competitive advantages that will sustain its investments. Macro-level or country-specific aspects encompass those traits or characteristics of host markets, which encourage FDI on the part of multinational enterprises (MNEs). Most studies overlook the path dependency of country- and firm-specific aspects, which are crucial to the internationalisation processes of international business, economics and trade. Academic studies either focus on macro- or micro-level aspects, without paying specific attention to the path dependency of expansion strategies. The present study attempts to fill these gaps in the existing body of knowledge, by investigating international business in these contexts. The rationale for undertaking this study was two-fold: first, FDI holds proven benefits for host markets, which include economic growth, industry spillover, human capital development and transitory tacit knowledge. From a firm-level perspective, outward FDI largely enhances the capacity of MNEs, prompting an increase in asset accumulation, market share and human capital development, the more efficient utilisation of resources and return on equity. In this study, an argument is presented for measuring the variables of both firm- and market-specific aspects, since most existing studies in this genre focus either on micro- or macro-level determinants, or totally overlook the importance of linkages. Second, no documented research has investigated the path dependency of expansion strategies, especially in Africa. Crucially, the importance of path dependency of South Africa’s outward investment has not been documented either. Further, existing evidence on the role the path dependency of expansion strategies plays in outward FDI are scarce, with even fewer studies following a sectorial approach. This study attempts to fill these academic research gaps by reflecting both firm- and market-level data from various sources for the period 1995–2015, using panel dynamic regression models. The study found that the linkages between firm heterogeneity (firm-level evidence) and market-level aspects create a path dependency of expansion strategies. MNEs adopt either joint ventures or wholly owned subsidiaries (or both) as market-entry strategies, but the decision is informed by the intensity of those firm heterogeneity aspects that allow them to exploit opportunities and mitigate risk in host markets. Notably, the intensity of path dependency seemingly varies from one industrial segment to the next. The impulse response approach delivered evidence that one standard deviation shock of firm-specific variables led to a moderate improvement in firm-level capacities in the short run, but a significant improvement in the long run. The same result was recorded for market-level aspects, with the intensity of the results varying from one industry to the next. The causality test attempted to explore the causal relationship between the study variables in both firm- and market-level aspects. Empirical evidence from the study indicates that the size of the firm and its capacity to utilise its resources efficiently, influence their investment in host markets. As regards market-specific aspects, the size of the economy, levels of industry and trade openness were found to have a causal effect on the inflow of FDI in host markets. The intensity of causal aspects was also found to vary from one industry to the next, due to variations in firm-level heterogeneity and their linkage in terms of aspects related to the host market. In sum, this study complements existing material on the subject of international business. / Iingcamango zezokwamazwe ngamazwe kunye notyalo-mali oluthe ngqo lwangaphandle: Umcimbi weenkampani zoMzantsi Afrika ezinamazwe ngamazwe Olu phononongo luphicotha ikhonkco phakathi kweengcingane zamazwe ngamazwe kunye notyalo-mali ngokuthe ngqo oluphuma ngaphandle kumazwe asemzini (i-FDI) –indibaniselo ebhalwe kakuhle kwimiqulu yoncwadi. Izifundo ezininzi ezenziweyo ziye zaqinisekisa ukuba inkqubo yamazwe ngamazwe iyazamkela zombini inkampani- kunye nemiba ekhethekileyo yemarike, ezihlola kakhulukazi imikhombandlela (izikhokelo) ye-FDI yangaphandle ngokomthamo kunye nephatheni. Kule ntsebenziswano, indlela yokuxhomekeka ifunyanwa ngobungakanani bezinto ezisebenzelelanayo/ezingenanayo okanye izenzo zokuhlangana, ukusuka kwiintlobo-ntlobo zamanqanaba enkampani kunye neemfuno zabasingathe imicimbi yeendawo zokuthengisa (iimarike) iimpahla ezilawula iiphatheni zotyalo-imali ngokweyokugqibela, kwimilinganiselo yokulungelelaniswa kwenqanaba lwenkampani. Iintlobo-ntlobo zamanqanaba enkampani ziquka ezo mpawu, ezenza inkampani nganye yenze isigqibo sotyalo-mali, ikhethe isicwangciso sokungeniswa kwimarike kwaye siyile amathuba amahle okhuphiswano aya kugcina utyalo-mali. Inqanaba eliphezulu okanye iinkalo ezithile zelizwe zibandakanya ezo zimo okanye iimpawu zeemarike ezamkelekileyo, ezikhuthaza i-FDI kwiinkampani zamazwe ngamazwe (i-MNEs). Uninzi lwezifundo aziyiniki ngqalelo indlela yokuxhomekeka yelizwe kwimicimbi ekhethekileyo nebalulekileyo yenkampani kwiinkqubo zangokwamazwe oshishino lwamazwe ngamazwe, uqoqosho norhwebo. Uphando lwemfundo ephakamileyo lugxininisa kwiinkcukacha ezikwinqanaba eliphezulu okanye eliphantsi ngokunganiki ngqalelo kwindlela yokuxhomekeka yeendlela zokwandisa. Uphononongo lwangoku luzama ukuvala izikhewu/izikroba kulwazi olukhoyo., ngokuphanda ishishini lwamazwe ngamazwe kule meko. Ingqiqo ekwenzeni olu phando yahlulwe kubini: okokuqala, i-FDI inenzuzo eqinisekisiweyo kwabasingethe iimarike, ezibandakanya ukukhula koqoqosho, ukuchuma kwamashishini, ukuphuhliswa kwezakhono zabantu kunye nolwazi oludlulileyo lwezakhono. Ngakwicala lenqanaba lenkampani, i-FDI yangaphandle iphakamisa amandla e-MNE, ikhawulezisa ukunyusa uqokelelo lwempahla, isabelo semarike kunye nophuhliso lwabantu, ukusetyenziswa ngokufanelekileyo kwezixhobo kunye nokubuyela kubulungisa bokulingana. Kolu phononongo, impikiswano inikezelwe ukulinganisa iinguqu zombini yenkampani- kunye nemimiselo ethile yemarike, njengoko olunye uphando oluninzi olwenziweyo kolu hlobo lugxininisa koonobangela abakwizinga elisezantsi okanye eliphezulu, okanye kunganikwa ngqalelo tu kukubaluleka kwezenzo zokudibana / zokunxibelelana. Okwesibini, akukho phando lubhaliweyo oluphande indlela yokuxhomekeka kweendlela zokwandisa, ngakumbi e-Afrika. Ngokusesikweni, ukubaluleka kwendlela yokuxhomekeka yotyalo-mali lwangaphandle eMzantsi Afrika alukaze nalo lubhalwe phantsi. Ukongezelela, ubungqina obukhoyo kwindima yendlela yokuxhomekeka yeendlela zokwandisa kwi-FDI yangaphandle zinqabile, kwakunye nezifundo ezimbalwa ezilandela indlela yamacandelo. Olu phononongo luzama ukuzalisa izikroba zophando zemfundo ephakamileyo ngokuzibonakalisa zombini inkampani- kunye nedatha yamanqanaba emarike avela kwimithombo eyahlukeneyo yexesha lowe-1995-2015, usebenzisa iimodeli zepaneli ezinamandla zokubuy’umva. Uphononongo lufumanise ukuba ukudibana phakathi kweentlobo-ntlobo zenkampani (ubungqina bezinga lenkampani) kunye nemilinganiselo yezinga lemarike zidala indlela yoxhomekeko yeendlela zokukhula. Ii-MNE zamkela intsebenziswano ngokuhlangeneyo okanye bazibambele ngokwabo ngokupheleleyo (okanye zombini) njengeendlela zokungena kwimarike, kodwa isigqibo siphenjelelwa bubungakanani beentlobo-ntlobo zemicimbi yenkampani evumela ukuba baxhaphaze amathuba kwaye banciphise umngcipheko kwiimarike zenkampani. Ngokuphawulekayo, ubukhulu bokuxhomekeka wendlela yokuxhomekeka kukhangeleka kusahluka ukusuka kwicandelo elinye lozoshishino ukuya kwelinye elilandelayo. Indlela yokuphendula ngokungxama inikezele ubungqina bokuba ukuphazamiseka okusesikweni kwizinto eziguquguqukayo zenkampani ezikhethekileyo zikhokelele ekuphuculeni okusezingeni eliphakathi kwinqanaba kubungakanani benqanaba lenkampani ngexeshana, kodwa ukuphuculwa okubonakalayo nokubalulekileyo ekuhambeni kwexesha. Isiphumo esifanayo sabhalwa phantsi kwiinkalo zemarike, nobukhulu beziphumo zohluka ukusuka kwelinye ishishini ukuya kwelinye. Uvavanyo lwamaxesha athile luzame ukuphonononga ubudlelwane bamaxesha athile phakathi kwezifundo zezinto eziguquguqukayo kwiinkalo zombini inkampani –kunye nenqanaba lemarike/ neemeko zemarike. Ubungqina bamava obuvela kuphando lubonisa ukuba ubungakanani benkampani kunye namandla okusebenzisa uvimba wezixhobo ngokufanelekileyo, ziphembelela utyalo-mali kwiimarike zenkampani. Ngokubhekiselele kwimimandla ethile yemarike, ubungakanani boqoqosho, amazinga oshishino kunye nokuvuleka kwezorhwebo kufunyaniswe ukuba kunefuthe elenzekayo ngamaxesha athile ekungeneni kwe-FDI kubasingathi beemarike. Ubungakanani bemicimbi eyenzeka ngamaxesha athile yafunyanwa kwakhona ukuba yohlukile ukusuka kwelinye ishishini ukuya kwelinye, ngenxa yeenguqu kwiintlobo-ntlobo zeamanqanaba enkampani kunye nokudibana kwabo ngokwemiba enxulumene nabasingethe imarike. Kafutshane esi sifundo, sigcwalisa izixhobo ezikhoyo kwisihloko sezoshishino lamazwe ngamazwe. / Diteori tša peyomaemong a boditšhabatšhaba le peeletšothwii ye e tšwago dinageng tša ka ntle: Seemo sa mabapi le difeme tša ka Afrika Borwa tše di tšwago dinageng di šele Dinyakišišo tše di utolla ka tsinkelo kgokagano gareng ga diteori tša peyomaemong a boditšhabatšhaba le peeletšothwii ye e tšwago dinageng tša ka ntle (FDI) – e lego kgokagano yeo go ngwadilwego ka yona kudu ka dingwalweng. Dinyakišišo tše mmalwa di utollotše gore tshepedišo ya go bea maemong a boditšhabatšhaba e lemoga bobedi dilo tša difeme le tše di amanago le difeme, tšeo di laolago kudu fao FDI ya dinaga tša ka ntle e lebilego gona mabapi le bontši le mokgwa. Ka tirišanong ye, go tšea diphetho go ya ka maemo go laolwa ke bontši bja dilo tšeo di dirwago ka nako e tee goba dikamano, go tloga go go farologanya ditšweletšwa ka femeng le dilo tša mmaraka wa ka nageng tšeo di laolago mekgwa ya dipeeletšo mabapi le go ya ka mmaraka wa ka nageng, go ya go mehuta ye mentši ya dipeakanyo tša ka femeng. Go farologanya ditšweletšwa ka femeng go bopilwe ke diphetogo tše, tšeo di kgontšhago feme ye itšego go tšea sephetho sa mabapi le peeletšo, go kgetha maano a go tsena ka mmarakeng le go hlama menyetla ye mekaone yeo e tlago tšwetša pele peeletšo ya yona. Dikokwane tša ekonomi ye kgolo goba tša ka nageng di akaretša diphetogo tšeo goba dipharologantšhi tša mebaraka ya ka nageng, tšeo di hlohleletšago FDI ka karolong ya dikgwebo tša dinaga tša ka ntle (di-MNE). Dinyakišišo tše ntši di hlokomologile go tšea diphetho go ya ka maemo ga naga le ga dilo tša ka femeng ye itšego, tšeo di lego bohlokwa go tshepedišo ya peyomaemong a boditšhabatšhaba ya dikgwebo tša boditšhabatšhaba, diekonomi le kgwebišano. Dinyakišišo tša dirutegi di ka be di lebeletše kudu dilo tša ekonomi ye kgolo goba tša ye nnyane, ka ntle le go lebiša šedi ye kgolo go go tšea diphetho go ya ka maemo a boditšhabatšhaba ga maano a katološo. Dinyakišišo tše di leka go tlatša dikgoba tše ka tsebo ye e lego gona, ka go nyakišiša dikgwebo tša boditšhabatšhaba ka maemong a. Maikemišetšo a go dira dinyakišišo tše e bile a mabedi: sa mathomo, FDI e na le dikholego tšeo di tiišeditšwego go mebaraka ya ka dinageng, tšeo di akaretšago kgolo ya ekonomi, khuetšano ya diintasteri, tlhabollo ya bokgoni bja bašomi le phetišetšo ya tsebo ye e lego nyanyeng. Go ya ka maemong a difeme, FDI ye e tšwago dinageng tša ka ntle e godiša bokgoni bja di- MNE, ya hlohleletša koketšego ya khwetšo ya dithoto, ya kabelano ya mmaraka le ya tlhabollo ya bokgoni bja bašomi, tšhomišo ye kaone kudu ya methopo le go hwetša poelo go dikabelano. Ka mo dinyakišišong tše, go lagišwa ntlha ya go ela diphapano tša bobedi dilo tša ka femeng le tša ka mmarakeng, ka ge bontši bja dinyakišišo tše di lego gona ka mo lekaleng le la dinyakišišo di lebeletše kudu tšeo di laolago ekonomi ye nnyane goba ye kgolo goba tšeo di hlokomologago ka botlalo bohlokwa bja dikgokagano. Sa bobedi, ga go dinyakišišo tšeo di ngwadilwego tšeo di nyakišišitšego go tšea diphetho go ya ka maemo ga maano a katološo, kudukudu ka Afrika. Se bohlokwa ke gore, bohlokwa bja go tšea diphetho go ya ka maemo ga peeletšo ya Afrika Borwa ya dinaga tša ka ntle ga se gwa ngwalwa le ge go le bjale. Godimo ga fao, bohlatse bjo bo lego gona ka ga mošomo wa go tšea diphetho go ya ka maemo fao go ralokago ka ga maano a katološo ka go FDI ya dinaga tša ka ntle e se bjo bontši, gomme go na le dinyakišišo tše mmalwa go latela mokgwa wo o lebeletšego makala. Dinyakišišo tše di leka go tlatša dikgoba tše tša dinyakišišo tša dirutegi ka go laetša tshedimošo ya bobedi ka maemong a difeme le ka mebarakeng go tšwa methopong ya mehutahuta go tloga ka mengwaga ya 1995–2015, ka go šomiša mekgwa ya kakanyo ya dikamano ye e fetogago. Dinyakišišo di hweditše gore dikamano gareng ga go farologanya ditšweletšwa (bohlatse bja ka maemong a difeme) le dilo tša maemo a ka mmarakeng di hlola go tšea diphetho go ya ka maemo ga maano a katološo. Di-MNE di šomiša masolo a mohlakanelwa goba ikhamphani tša ka fasana tšeo di laolwago ka botlalo (goba ka bobedi) bjalo ka maano a go tsena ka mmarakeng, eupša sephetho se laolwa ke bontši bja dilo tšeo tša go farologanya ditšweletšwa tšeo di di dumelelago go nyaka dibaka le go fokotša kotsi ka mebarakeng ya ka nageng. Seo se lemogilwego ke gore, bontši bja go tšea diphetho go ya ka maemo go bonala go fapane go ya ka karolo ya intasteri go ya go ye nngwe. Mokgwa wa go arabela kgoketšo wo o hlagišitšwego ka bohlatseng bja gore phapogo ya tlwaelo ya diphapano tša ka femeng e feleleditše ka kaonafalo ya magareng ya bokgoni bja difeme lebakeng le lekopana, eupša ka kaonafalo ye kgolo mo lebakeng le letelele. Dipoelo tše di swanago di begilwe ka go dilo tša maemo a ka mmarakeng, gomme bontši bja dipoelo tša fapana go ya ka diintasteri. Teko ya mathata yeo e bego e leka go utolla kamano ya tšeo di bakago se gareng ga phapano ya dinyakišišo ka go bobedi ka dilo tša ka femeng le tša ka mmarakeng. Bohlatse bja maitemogelo go tšwa ka mo dinyakišišong bo laetša gore bogolo bja feme le bokgoni bja yona bja go šomiša methopo ya yona gabotse ntle le mathata, di huetša peeletšo ya yona ka mebarakeng ya ka nageng. Mabapi le dilo tša ka mmarakeng, bogolo bja ekonomi, maemo a intasteri le go hloka sephiri ka kgwebišanong di bonwe di na le seabe sa go baka seemo go tseneng ga FDI ka mebarakeng ya ka nageng. Bontši bja dilo tše di bakago maemo go hweditšwe gape gore go fapana go ya ka diintasteri, ka lebaka la diphapano ka go farologanyo ya ditšweletšwa ka difemeng le kamano ya tšona mabapi le dilo tšeo di amanago le mmaraka wa ka nageng. Bjalo ka kakaretšo, dinyakišišo tše di tlaleletša dingwalwa tšeo di lego gona ka ga hlogotaba ya dikgwebo tša boditšhabatšhaba. / Business Management / D. Phil. (Business Management)

Thesis (MDF)--Stellenbosch University, 2014. / Based on quarterly data for the period 1985 to 2012, this study analyses the effect of Foreign Portfolio Investment on the growth of the South African economy. In order to support the country’s economic growth, South Africa needs foreign capital in the form of foreign capital flows and these include both foreign direct investment and foreign portfolio investment. Given the low national savings rate in South Africa, foreign portfolio inflows play an important role in the sustenance of higher levels of investment and growth. The study employed the Johansen Cointegration technique to analyse the long-run relationship and the Vector Error Correction Model for the short-term interaction between variables. The long-run results illustrated that there is a negative relationship between Gross Domestic Product and foreign portfolio investment. However in the short run the results indicate a positive relationship between foreign portfolio investment and gross domestic product. These results are supported by the Granger causality test which shows that foreign portfolio investment Granger causes Gross domestic product. The findings from the study suggest that authorities should take advantage of foreign portfolio investment in the short run. However the results also suggest that foreign direct investment is another important source of capital in the long term.