Munich Personal RePEc Archive

Long-run cointegration between foreign direct investment, direct investment and unemployment in South Africa

Chella, Namapsa and Phiri, Andrew (2017): Long-run cointegration between foreign direct investment, direct investment and unemployment in South Africa.

[img]
Preview
PDF
MPRA_paper_82371.pdf

Download (7MB) | Preview

Abstract

The primary objective of this paper is to investigate the relationship between foreign direct investment, domestic investment and unemployment in South Africa. Our mode of empirical investigation is the autoregressive distributive lag (ARDL) cointegration model which provides the advantage of accommodating for a mixture of levels stationary and difference stationary time series variables and is applied to quarterly data collected between 1970 and 2014. Our empirical results point to the existence of a negative effect of domestic investments on unemployment levels whereas foreign direct investment appears to have no significant effect on reducing unemployment levels. Collectively, these results hold crucial implications for South African policymakers.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.