This study uses panel data to advance international business literature about the efficiency with which Foreign Direct Investment (FDI) inflows to developed countries create employment compared to developing countries. It is argued that the economic activity of a host economy in the growth of its Gross Domestic Product (GDP) facilitates its ability to attract FDI. The importance of this relationship lies in the components that make the GDP a composite measure and has wide-ranging implications on governance, effectiveness and efficiency of a host country. The analysis of data confirmed the hypothesis on the efficiency of developed economies in creating employment from FDI inflows. The study further presents a detailed case, analysed from data, on the relationship between economic activities of major industrial sectors in South Africa and their ability to attract foreign investments. Furthermore, the extent to which the foreign investment creates employment in proportion to the FDI inflow is examined. The study findings support a positive relationship with GDP – FDI and employment. While similar trends were seen on industrial sectors, a declining growth in employment and FDI inflow were noticeable in South Africa. / Dissertation (MBA)--University of Pretoria, 2012. / Gordon Institute of Business Science (GIBS) / unrestricted
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:up/oai:repository.up.ac.za:2263/25990 |
| Date | 01 July 2012 |
| Creators | Hlongwane, Xolani John |
| Contributors | Prof A Wöcke, ichelp@gibs.co.za |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Dissertation |
| Rights | © 2011, 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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