Foreign direct investment has been sharply affected by the global SARS-CoV-19 pandemic, as quarantine measures have decimated global trade, aviation and domestic economies through lockdowns which have wreaked havoc on markets. Macroeconomic indicators including GDP growth rates, unemployment, business confidence, consumer confidence, retail sales and inflation have all been negatively affected due to the simultaneous supply & demand shock caused by the pandemic. Economic crises are a regularly occurring feature, with a degree of cyclicality determining their emergence. The uniqueness of crises, in their appearance and dissipation, stems from a large variance in relevant macroeconomic, fundamental and societal factors giving rise to the crisis in the first place, with the uniqueness being bound and pertinent to a selected period of time in history under which they occurred. In this thesis we explored the impact of the two most significant economic crises of the 21st century, the Great Recession and the ongoing SARS-CoV-19 pandemic and their impact on capital flows, specifically on FDI-flows in two developed markets and two emerging markets. Our findings suggest that FDI-flows display a high synchronicity with stages of economic cycles, and tend to decrease during economic recessions and increase during economic expansions.

Economic and legal aspects of foreign direct investment in the Czech Republic Abstract The thesis deals with the issue of foreign direct investment and investment incentives in the Czech Republic from an economic and legal point of view. The thesis defines the term FDI in the legislative framework and analyses from the available literature its positive and negative impacts on the host country and economic growth. Within the work, the genesis and development of the key Act No. 72/2000 is analysed in detail. The work aims to confirm the impact of changes in investment incentives on the inflow of FDI in the Czech Republic in the last two decades. The institutional role of CzechInvest and the procedure for approving investment incentives is also part of this work. Based on several studies, the thesis presents a dissenting opinion on the impact of investment incentives on the inflow of new investments and the overall economic advantage of these subsidies. In terms of statistical data, the work analyses both data on investment incentives and the inflow of FDI into the Czech Republic, both from a territorial and sectoral point of view. Part of the work is also an overview of the main determinants defined by experts influencing the inflow of FDI into the host countries. The work analyses the current development of...

Economic growth rate differs largely between different countries. There are many opinions on which factors really affect the rate of growth in different economies and this causes debates. The factors that affect economic growth include political systems, social settings, economic freedom, human capital and institutional organization. These factors affect not only productivity, but also efficiency. This thesis’ purpose is to investigate and explain the factors that affect economic growth in sub-Saharan Africa. Through use of a fixed effects regression model, a panel data investigation will be conducted, and an analysis will be presented in this thesis. By using secondary data for sub-Saharan African countries from reliable sources, the factors that affect economic growth on an annual basis from year 2006 to 2017 are examined. Growth in gross domestic product per individual (GDP per capita growth) is the dependent variable and represents economic growth. The independent variables which are believed to affect this growth are also given, and these include: population growth, foreign direct investment, level of corruption, democracy, life expectancy at birth, expected years of schooling and economic freedom. The findings estimate that some of the chosen variables, for example population growth and life expectancy at birth significantly affect economic growth and development in these countries. The rest of the independent variables have an impact on economic growth but are not statistically significant according to this study.

The South African government announced in 2008 that it intends to promote South Africa as a suitable company headquarter jurisdiction for investment in Africa in general and the sub-Sahara region in particular. The 2010 Taxation Laws Amendment Bill introduced a number of tax changes to lure headquarter companies to South Africa. The new South African headquarter company regime attempts to attract foreign direct investment through these changes. The government plans to make South Africa a gateway for African investments. In order to achieve this goal the regulatory, economic and legal frameworks need to be suitable for international investment. This study analyses the tax characteristics of an ideal holding company regime and investigate the importance that is placed on tax considerations compared to non-tax considerations by companies when faced with investment decision making and whether tax is a primary driver of such decisions. A single source ethnographic case study is used to analyse the process followed by an organisation, and the considerations used by the key decision makers within this organisation, for setting up a holding company in South Africa to drive an investment and business expansion. The case study consists of an investigation into the process followed, the strategy formulated and the structuring of the business for making the investment in selected African countries. It further investigates where the ultimate holding company will be located as a headquarter company for all further Africa business expansion. It was found that the tax considerations are mainly a favourable capital gains tax regime, low income taxes, no or low tax on dividends, a favourable tax treaty network, the absence of controlled foreign company legislation and a liberal thin capitalisation and transfer pricing regime. Non-tax factors also play a significant role in decision making when considering the investment destination. These factors include: economic and political stability; adequate physical, business, accounting and legal infrastructure; the absence (or limited presence) of bureaucratic obstacles; adequate communication channels; the ability to repatriate profits freely; an effective banking system; and the availability of an adequate dispute resolution mechanism. There is a definite distinction between tax specific strategies where enterprises are set up to take advantage of tax incentives provided by certain jurisdictions and where an investment decision is taken and aligned with business decisions to align these strategies to take advantage of a favourable tax regime Jurisdictions that only concentrate on tax incentives will find it difficult to attract foreign direct investment. Decision makers that are held responsible for investors’ capital will take tax as well as non-tax aspects into account when deciding to invest in a country and to set up holding company in that jurisdictions. It is therefore important for a jurisdiction to provide an environment that is conducive to do business in order to attract foreign direct investment. / Dissertation (MCom)--University of Pretoria, 2013. / lmchunu2014 / Taxation / unrestricted

Promotion of foreign direct investment in Zambia’s mining sector has been a key priority of the government ever since large scale mining commenced in the country. The sector, which confers on the country numerous benefits either from the economic or social front, has continued to grow with a number of mines being opened in most parts of the country. However, mining, by nature, leads to degradation of the environment and consequently affects the right of persons to enjoy a clean, safe and healthy environment. In light of this, it became imperative that a study is undertaken to investigate the extent to which the environment and human rights are protected from the effects of mining activities in Zambia. The purpose of undertaking this study is to suggest an approach that could be adopted in order to ensure protection of the environment from the negative effects of mining activities. In achieving this goal, a comparative approach was embraced and a qualitative method of data collection employed. The study has revealed that foreign direct investment, environmental protection, and human rights are interrelated with one common objective– enhancing the livelihood of human beings. This is evident from the policies developed and legislation enacted to protect human rights and also control mining activities in Zambia. The study has also revealed that at the international level, standards have been developed to ensure minimisation of the effects of mining activities on the environment. However, these standards are not legally binding. A key finding of the study is that although there a number of domestic policies (such as the Mineral Resources Development Policy and National Policy on Environment) and legislation (Environmental Management Act and the Mines and Mineral Development Act) that prescribe the expected standards to be upheld by mining companies, these do not contain adequate mechanisms to curtail environmentally degrading mining activities. Furthermore, institutions such as the Human Rights Commission, Mines Safety Department and Zambia Environmental Management Agency that have the responsibility of ensuring that mining companies comply with the applicable legislation have not been effective in this regard largely as a result of the numerous challenges that they face, including insufficient funding, inadequate capacity and political interference. This has led some spirited non-governmental organisations to bring court actions against erring mining companies. The analysis of the decisions rendered by the courts shows that the courts have, in these cases, taken a dim view of claims brought before them by complainants against the actions of respondent mining companies. The thesis concludes that while there has been an increase in investment in the mining sector, there are no corresponding legislative or policy measures to curtail mining activities that have negative impacts on the environment. The absence of such measures has left mining companies at liberty to act with impunity at the expense of a sound environment and consequentially, protection of the human rights of persons that live in the vicinity of the mines. It is therefore argued that the framework for foreign investment has neither facilitated protection of the environment nor guaranteed respect for human rights. In order to address this problem, a suggestion is made to the effect that Zambia's legislation needs to adopt some of the best practices that exist in the mining and environmental legislation enacted by some SADC Member States. Doing so would ensure mutual reinforcement of the framework on foreign direct investment and mining on the one hand, and environmental protection and human rights on the other. / Mini Dissertation (LLM)--University of Pretoria, 2017. / Centre for Human Rights / LLD / Unrestricted

This study examined the effect of foreign ownership on the financial and market performance of firms in the South African economy. To review this relationship 18 foreign owned firms listed on the Johannesburg Stock Exchange All Share Index in 2010 were identified and paired with a locally owned firm of a similar size, in the same economic sector and with the same ownership model. The analysis was done in two phases. Phase One reviewed the financial and market indicators; Phase Two reviewed the investor return. The analysis in Phase One showed that foreign ownership did not result in any financial benefits for the firm, if Return on Assets and Return on Equity were used as proxies for financial performance. There was some evidence that foreign corporate firms create more value, as indicated by the percentage of EVA increase of 4.6% for the corporate ownership model. Differences in the Weighted Average Cost of Capital (WACC) between the local and foreign corporate ownership models could indicate that this increase is an accounting anomaly rather than an absolute benefit. Market growth data showed the opposite that locally owned institutional firms performed significantly better than foreign-owned institutional firms. In Phase Two, it was shown that although there was a material difference between the different portfolio returns, with the local portfolios performing better, the difference was not statistically significant. Overall, it can be concluded that there is very limited proof that foreign ownership has any secondary beneficial effect on the financial performance of South African firms. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

A shift in economic power from the developed world to emerging markets has seen the BRICS countries becoming the new growth centre of the world. In 2010, half of the total global foreign direct investment (FDI) flows went to emerging economies. A large portion of these FDI flows goes to the manufacturing industry with a quarter of the global GDP being generated by the production processes of multinational manufacturing enterprises (MMEs). The challenge for the BRICS countries will be to sustain their trend in FDI inflow. Previous studies on this topic focused on the determinants of FDI at country level as opposed to an industry specific focus. The outcome of this study assists MMEs in their entering decisions and policy makers in developing policies that create an enabling environment that will attract foreign capital.This research analyses the BRICS countries as potential destinations for FDI in the manufacturing industry. The analyses followed a three phased approach. The first phase identified the potential determinants of FDI to the manufacturing industry of the BRICS countries. The second phase either validated or disproved investor perceptions about the factors that would impact on the performance of an investment. In the third and final phase of the analysis, the competitiveness of the BRICS countries in attracting FDI to the manufacturing industry was assessed.The analysis of the three hypotheses contributed to the overarching theme of evaluating the BRICS countries as potential destinations for MMEs. The outcome of the analysis highlights that countries are unique and that investor perceptions about a country’s conditions and how this will impact on the performance of an investment are not always valid. In the overall analysis of the BRICS countries as potential destinations for FDI, the majority of the BRICS countries, with the exception of South Africa, are found to be competitive destinations for attracting FDI to the manufacturing industry. On the basis of the outcome of the analysis and the methodology followed in this study, a general model that can be used in future FDI research is suggested. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Foreign direct investment (FDI) is a source that improves the competiveness of the host country which can be further utilised to develop the country’s own resources and capabilities. In addition, non-affiliated local firms that do not have a foreign partner improve their performance due to the spillover effects gained either through the sharing of resources, learnings or due to the increase in competition. As such, FDI is seen as an important economic growth driver in developing economies since these economies struggle to compete in the global economy.The objective of this research is to determine whether foreign ownership in a developing economy is beneficial in terms of national competiveness; reducing the income gaps; improving employment opportunities; improving the financial performance of an acquired local firm and if the foreign parent introduces new technologies into the economy. Due to the mining- and manufacturing sector being the main recipients of FDI in South Africa and both having similar operations specifically being high capital and labour intensive, these sectors were chosen for the purpose of this research. The data sample was analysed using multiple regression as it is a flexible method of data analysis that may be appropriate whenever a quantitative dependent variable needs to be examined to find a relationship with two or more independent or explanatory variables.The results indicate significant benefits for the host economy in attracting FDI into the country. The benefits seemingly outweigh the costs and the presence of Multinational Corporations (MNCs) in South Africa will help it in elevating some of the socio-economic challengers like high unemployment rate and the shortage of skills through resource sharing with the MNCs. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Academic literature has increasingly shown escape foreign direct investment (FDI) to be a strategic motive used by firms investing abroad to diversify their risk to their home market. Internationalisation allows firms to mitigate the risk of being based in uncertain environments characterised by underdeveloped institutions and economic weakness (institutional voids), which are seen as comparative disadvantages. By expanding abroad, firms reduce their dependence on the home market for their revenues and profits. To date, most existing research has explored the characteristics, drivers and motivations for outbound FDI from emerging economies, but has paid relatively less attention to the economic consequences of such investments. The aim of this study is to gain an understanding of the economic consequences of escape FDI. Understanding the economic consequences of escape FDI will enable managers of South African multinational firms (MNEs) to develop and implement internationalisation strategies that create value, as measured by an increase in market capitalisation, for the firm. Quantitative, explanatory research methods were adopted in order to gain new insights into the economic consequences of escape FDI. The study adopted a longitudinal, multi-industry design and was deductive in nature. The population was 85 firms, which were investigated over a 5-year period, with an interval between 2013 and 2018. The data was analysed using descriptive statistics followed by confirmatory regression analysis. The key finding was that South African MNEs who invested in emerging markets, particularly in multiple host countries in Africa whilst adopting a “portfolio approach” to their international investments, delivered exceptional performance, creating significant value in the process. The secondary finding was that individual firms who either invested in emerging markets or developed markets created and destroyed value evenly, confirming existing literature that firms are heterogeneous and that a firms place in time and space, and thus context, matters fundamentally. The findings from this research add to the extant literature in the field of international business by introducing the “portfolio approach” to international investment strategy and performance. The implications for management is that firms need to understand their ownership advantages in designing and implementing international investment strategies because escape based FDI and related economic performance can have profound direct consequences for the firm itself, but indirectly on the wider community as a whole. / Mini Dissertation (MPhil)--University of Pretoria, 2019. / Gordon Institute of Business Science (GIBS) / MPhil (International Business) / Unrestricted

Cette thèse étudie le rôle des IDE dans les PVD. Le chapitre 1 examine l’interaction entre les IDE et les APD. Les résultatsagrégés révèlent que l'effet substituable des APD sur les IDE contrebalance son effet complémentaire. Les résultatsdésagrégés montrent que les APD aux intrants complémentaires complètent les IDE dans le capital physique alors que lesAPD dans le capital physique prennent la place de leur homologue IDE. Par contre, les IDE aux intrants complémentaires se comportent comme leur contrepartie APD. Le chapitre 2 étudie les différences en termes de performance entre les firmes étrangères et domestiques. Les firmes étrangères sont plus productives, moins rentables et s’accroissent plus rapidement que les firmes domestiques. D’autre part, elles survivent mieux que les firmes domestiques. En outre, nous indiquons aussi qu’il existe les prix de transfert et le coût irrécupérable parmi les firmes étrangères au Vietnam. Le chapitre 3 considère le comportement des exportateurs au Vietnam. Nous constatons que la répartition des intensités d'exportation au Vietnam affiche une forme de U comme celle des pays fortement engagés aux CVM. En examinant les primes à l'exportation, nous démontrons que les exportateurs de transformation sont moins productifs et paient des salaires plus bas que les exportateurs ordinaires et même que les non-exportateurs. Cette tendance est plus évidente parmi les firmes étrangères et celles localisant dans les zones non tarifaires. En conclusion, même si l'IDE se présente une source importante d'entrée de capitaux pour les PVD, des analyses plus détaillées sont nécessaires pour mieux comprendre leurs effets sur une économie. / This thesis investigates the role of FDI in developing economies. Chapter 1 examines the interaction between FDI andODA. Our aggregated results reveal that the substitutable effect of ODA on FDI overbalances its complementary effect.Disaggregated results show that ODA in complementary inputs complements FDI in physical capital while ODA in physicalcapital substitutes its counterpart FDI. Moreover, FDI in complementary inputs behaves like its counterpart ODA. Chapter2 checks the difference in performance between foreign and domestic firms. We find that foreign firms are more productive,less profitable and grow faster than domestic firms. Moreover, they survive better than Vietnamese ones. Additionally, wealso indicate that there exist the transfer mispricing and the sunk cost among foreign firms in Vietnam. In chapter 3, weinvestigate the firms’ export behavior. We find that the distribution of export intensities in Vietnam displays a U-shapedpattern like the one found for countries strongly engaged in GVCs. By examining the export premia, we indicate thatprocessing exporters are less productive and pay lower wages than non-processing exporters and even than non-exporters.This pattern is more obvious among foreign firms and firms in the non-tariff zone. To conclude, even if FDI represents animportant source of growth for developing countries, more disaggregated analyses are still needed to better understand their effects on an economy.