An assessment of co-movement between foreign direct investment (FDI) and South African construction sector (SACS) output

Najimu Saka; John Lowe

An assessment of co-movement between foreign direct investment (FDI) and South African construction sector (SACS) output

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

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Abstract

Proponents of open account contend that Foreign Direct Investment (FDI) promotes the growth of infrastructure through positive externalities. However empirical evidence on whether FDI promote growth in developing countries remains inconclusive. This paper investigates the comovement between FDI, the South African Construction Sector (SACS) output and the Gross Domestic Product (GDP). The data on FDI, SACS and GDP were extracted from the UNCTAD data base for the years 1970 through 2008. The study used econometric methodology including unit root test, Johansen cointegration and Granger causality tests to analyse the data. The result indicates that FDI, SACS, and GDP are stationary after first difference.

Original language	English
Title of host publication	Proceedings of the 26th Annual ARCOM Conference
Publisher	ARCOM
ISBN (Print)	9780955239045
Publication status	Published - 1 Jan 2010

Keywords

gross domestic product
foreign direct investment
South Africa
construction sector
econometrics

Documents and Links

http://www.arcom.ac.uk/publications/procs/ar2010-0083-0092_Saka_and_Lowe.pdf

http://researchonline.gcu.ac.uk/bne/170

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Saka, N., & Lowe, J. (2010). An assessment of co-movement between foreign direct investment (FDI) and South African construction sector (SACS) output. In Proceedings of the 26th Annual ARCOM Conference ARCOM. http://researchonline.gcu.ac.uk/bne/170

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abstract = "Proponents of open account contend that Foreign Direct Investment (FDI) promotes the growth of infrastructure through positive externalities. However empirical evidence on whether FDI promote growth in developing countries remains inconclusive. This paper investigates the comovement between FDI, the South African Construction Sector (SACS) output and the Gross Domestic Product (GDP). The data on FDI, SACS and GDP were extracted from the UNCTAD data base for the years 1970 through 2008. The study used econometric methodology including unit root test, Johansen cointegration and Granger causality tests to analyse the data. The result indicates that FDI, SACS, and GDP are stationary after first difference.",

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N2 - Proponents of open account contend that Foreign Direct Investment (FDI) promotes the growth of infrastructure through positive externalities. However empirical evidence on whether FDI promote growth in developing countries remains inconclusive. This paper investigates the comovement between FDI, the South African Construction Sector (SACS) output and the Gross Domestic Product (GDP). The data on FDI, SACS and GDP were extracted from the UNCTAD data base for the years 1970 through 2008. The study used econometric methodology including unit root test, Johansen cointegration and Granger causality tests to analyse the data. The result indicates that FDI, SACS, and GDP are stationary after first difference.

AB - Proponents of open account contend that Foreign Direct Investment (FDI) promotes the growth of infrastructure through positive externalities. However empirical evidence on whether FDI promote growth in developing countries remains inconclusive. This paper investigates the comovement between FDI, the South African Construction Sector (SACS) output and the Gross Domestic Product (GDP). The data on FDI, SACS and GDP were extracted from the UNCTAD data base for the years 1970 through 2008. The study used econometric methodology including unit root test, Johansen cointegration and Granger causality tests to analyse the data. The result indicates that FDI, SACS, and GDP are stationary after first difference.

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