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The impact of multinational corporations on the South African economy

According to Saville (1993), the economic growth of less developed countries is impeded due to the presence of four “gaps” in these economies. However, Saville (1993), states that, by filling these gaps, developing economies are able to achieve economic growth and development. The main objective of this research is to update the study of Saville (1993) in order to determine the impact of the multinational corporation on the host economy in reference to the drivers of exogenous and endogenous growth in contribution to filling these gaps.This is a quantitative study which makes use of secondary data obtained from JSE listed firms operating in the mining sector in South Africa. Statistical regression analysis was conducted and results are compared to the previous Saville (1993) study.In summary, the results of the study are mixed however in terms of informing government policy, this study confirms the importance of FDI in emerging markets. The caveat however, firstly, is to inform policy to attract the right kinds of FDI to contribute to filling specific gaps in to achieve the required economic growth. Secondly, policy should require collaboration between MNC’s, private firms as well as public sector firms in order to share knowledge and profits in having a positive effect on social welfare and economic growth in the domestic economy. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/22823
Date24 February 2013
CreatorsRenzi, Loredana
ContributorsSaville, Adrian, ichelp@gibs.co.za
PublisherUniversity of Pretoria
Source SetsSouth African National ETD Portal
Detected LanguageEnglish
TypeDissertation
Rights© 2012 University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria.

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