An analysis of push and pull factors of capital flows in a regional trading bloc

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dc.contributor.advisor Gossel, Sean J en_ZA Mudyazvivi, Elton en_ZA 2018-05-14T12:56:25Z 2018-05-14T12:56:25Z 2018 en_ZA
dc.description.abstract Inflows of Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) into Sub Saharan Africa (SSA) between 2000 and 2014 remained a minute fraction (at only 2% and 1% respectively) of global inflows. This study seeks to explain this phenomenon by examining the push (global) and pull (domestic) factors that may help to explain inflows of FDI and FPI in SSA and the mechanisms through which these factors affect inflows (the how). As ongoing regional integration efforts in Africa through trading blocs, the study also discusses the role of regional trading blocs in explaining capital flows into SSA. In the process, the research challenges some of the established theories and contributes to policy for managing international capital inflows. The study identifies possible explanatory variables from existing theory and empirical studies. Data on possible determinants of FDI and FPI is largely extracted from the World Bank and IMF databases. The determinants considered are macro-economic, infrastructural, institutional, resource endowment and geographical related. These are modeled into econometric model of FDI and FPI. Several hypotheses on the possible determinants are then tested using panel regressions with random effects. The results indicate that SSA's FDI during the period reviewed is mainly pulled by macroeconomic dynamics, infrastructure and human resources factors and pushed by global macroeconomic performance. Likewise, FPI is largely pulled by GDP and infrastructure factors. The results further show that FDI and FPI inflows in regional trading blocs of SADC, COMESA and ECOWAS are affected by different risk, return, macroeconomic, trade and distance factors. The effects of factors such as distance and macroeconomic factors also vary across the regional trading blocs, suggesting their importance of these blocs in capital flows. en_ZA
dc.language.iso eng en_ZA
dc.subject.other Development Finance en_ZA
dc.subject.other Foreign Direct Investment en_ZA
dc.subject.other Foreign Portfolio investment en_ZA
dc.subject.other capital inflows en_ZA
dc.subject.other push and pull factors en_ZA
dc.title An analysis of push and pull factors of capital flows in a regional trading bloc en_ZA
dc.type Thesis en_ZA
uct.type.publication Research en_ZA
uct.type.resource Thesis en_ZA
dc.publisher.institution University of Cape Town
dc.publisher.faculty Faculty of Commerce en_ZA
dc.publisher.department Research of GSB en_ZA
dc.type.qualificationlevel Masters en_ZA
dc.type.qualificationname MCom en_ZA
uct.type.filetype Text
uct.type.filetype Image

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