The Symmetric effects of Fiscal Policy on FDI Inflows. Evidence from South Africa
A key objective of this study is to examine the symmetric effects of fiscal policy on foreign direct investment (FDI) inflows into South Africa using time series data from 1980 to 2020. The Augmented Dickey-Fuller (ADF) unit root test was conducted to establish stationarity of the variables. To scrutinize the symmetric link between FDI, tax revenue (TAX), government expenditure (GEX), gross fixed capital formation (GFCF), government debt (GDE), and debt service (DES), the linear autoregressive distributed lag (ARDL) bound testing method was applied, which exhibits the long-run and short-run links between the variables. ADF results stipulate that none of the variables are integrated beyond one, i.e. (1). Findings support the existence of cointegration between the variables. Linear ARDL results confirm that TAX and GDE have positive links with FDI in the long-run, whereas GEX, GFCF, and DES have negative links. In the short-run, all variables have a negative link with FDI according to the linear ARDL results. All diagnostic test on serial correlation, normality, and heteroscedasticity are passed with results obtained from the FDI model
Year of publication: |
[2022]
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Authors: | Pamba, Dumisani |
Publisher: |
[S.l.] : SSRN |
Subject: | Südafrika | South Africa | Auslandsinvestition | Foreign investment | Finanzpolitik | Fiscal policy | Wirkungsanalyse | Impact assessment | Schätzung | Estimation |
Saved in:
freely available
Extent: | 1 Online-Ressource (15 p) |
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Type of publication: | Book / Working Paper |
Language: | English |
Notes: | Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments March 23, 2022 erstellt |
Other identifiers: | 10.2139/ssrn.4064880 [DOI] |
Source: | ECONIS - Online Catalogue of the ZBW |
Persistent link: https://www.econbiz.de/10013294021
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