Corresponding author

Teboho Jeremiah MOSIKARI, Department of Economics, North West University, South Africa

Co-authors

Joel H. EITA, School of Economics, College of Business and Economics, University of Johannesburg, South Africa

T. Confidence NTHEBE, Department of Economics, North-West University, South Africa

Does Corruption Hamper Inward FDI in South Africa from other African Countries? A Gravity Model Analysis

Pages

513-532

Abstract

The purpose of this paper is to investigate the relationship between corruption and FDI inflows from other African countries to South Africa. The study uses gravity model and employs panel data econometric technique such as pooled, fixed and random effects model. The results indicate that there is a significant negative relationship between South African corruption and FDI inflows from other African countries to South Africa. This implies that policy makers in South Africa should implement measures to curb corruption. This will help in attracting FDI inflows from other African countries and encourage the creation of job opportunities.

JEL classification

B40, C10, F02, F14

Keywords

Corruption, FDI Inflows, Panel Gravity Model

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