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

Najimu Saka, John Lowe

    Research output: Chapter in Book/Report/Conference proceedingConference contribution

    70 Downloads (Pure)

    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 languageEnglish
    Title of host publicationProceedings of the 26th Annual ARCOM Conference
    PublisherARCOM
    ISBN (Print)9780955239045
    Publication statusPublished - 1 Jan 2010

    Keywords

    • gross domestic product
    • foreign direct investment
    • South Africa
    • construction sector
    • econometrics

    Fingerprint Dive into the research topics of 'An assessment of co-movement between foreign direct investment (FDI) and South African construction sector (SACS) output'. Together they form a unique fingerprint.

  • Cite this