Determinants of Foreign Direct Investment in Malawi

dc.contributor.advisorGumede, Lungelo
dc.contributor.authorChimbalu, Mkondana
dc.date.accessioned2019-10-16T07:18:11Z
dc.date.available2019-10-16T07:18:11Z
dc.date.issued2019
dc.date.updated2019-10-16T07:12:38Z
dc.description.abstractThis study examines empirically the determinants of Foreign Direct Investment in Malawi, by employing annual data that covered the period 1970-2016. The study used a dynamic model, the Autoregressive Distributed Lag bounds-testing approach to co-integration and error correction model, to explore these determinants. The study found that a long run relationship between Foreign Direct Investment and the selected determinants: market size, infrastructure, human capital, broad money, real exchange rate, population growth, government consumption, and inflation. The study further found that the determinants that were significantly associated with attracting Foreign Direct Investment in Malawi included infrastructure, broad money and government consumption. Specifically, the study results found that government consumption is negatively and significantly associated with Foreign Direct Investment both in the short and long run; infrastructure is positively and significantly associated with Foreign Direct Investment in the long run; broad money is positively and significantly associated with Foreign Direct Investment in the long run; and no significant relationship was found between market size, human capital, real exchange rate, population growth, and inflation both in the short and long run. These results have important policy implications for Malawi. These include the need for Malawian authorities to focus on strategies that create incentives to increase the level of physical infrastructure in the country; implementing monetary policies, fiscal incentives and subsidies that promote financial development; as well as promoting FDI-friendly government policies that minimise the impact of distortionary fiscal policies such as distortionary taxation and deregulation.
dc.identifier.apacitationChimbalu, M. (2019). <i>Determinants of Foreign Direct Investment in Malawi</i>. (). ,Faculty of Commerce ,Graduate School of Business (GSB). Retrieved from http://hdl.handle.net/11427/30575en_ZA
dc.identifier.chicagocitationChimbalu, Mkondana. <i>"Determinants of Foreign Direct Investment in Malawi."</i> ., ,Faculty of Commerce ,Graduate School of Business (GSB), 2019. http://hdl.handle.net/11427/30575en_ZA
dc.identifier.citationChimbalu, M. 2019. Determinants of Foreign Direct Investment in Malawi. . ,Faculty of Commerce ,Graduate School of Business (GSB). http://hdl.handle.net/11427/30575en_ZA
dc.identifier.ris TY - Thesis / Dissertation AU - Chimbalu, Mkondana AB - This study examines empirically the determinants of Foreign Direct Investment in Malawi, by employing annual data that covered the period 1970-2016. The study used a dynamic model, the Autoregressive Distributed Lag bounds-testing approach to co-integration and error correction model, to explore these determinants. The study found that a long run relationship between Foreign Direct Investment and the selected determinants: market size, infrastructure, human capital, broad money, real exchange rate, population growth, government consumption, and inflation. The study further found that the determinants that were significantly associated with attracting Foreign Direct Investment in Malawi included infrastructure, broad money and government consumption. Specifically, the study results found that government consumption is negatively and significantly associated with Foreign Direct Investment both in the short and long run; infrastructure is positively and significantly associated with Foreign Direct Investment in the long run; broad money is positively and significantly associated with Foreign Direct Investment in the long run; and no significant relationship was found between market size, human capital, real exchange rate, population growth, and inflation both in the short and long run. These results have important policy implications for Malawi. These include the need for Malawian authorities to focus on strategies that create incentives to increase the level of physical infrastructure in the country; implementing monetary policies, fiscal incentives and subsidies that promote financial development; as well as promoting FDI-friendly government policies that minimise the impact of distortionary fiscal policies such as distortionary taxation and deregulation. DA - 2019 DB - OpenUCT DP - University of Cape Town LK - https://open.uct.ac.za PY - 2019 T1 - Determinants of Foreign Direct Investment in Malawi TI - Determinants of Foreign Direct Investment in Malawi UR - http://hdl.handle.net/11427/30575 ER - en_ZA
dc.identifier.urihttp://hdl.handle.net/11427/30575
dc.identifier.vancouvercitationChimbalu M. Determinants of Foreign Direct Investment in Malawi. []. ,Faculty of Commerce ,Graduate School of Business (GSB), 2019 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/30575en_ZA
dc.language.rfc3066Eng
dc.publisher.departmentGraduate School of Business (GSB)
dc.publisher.facultyFaculty of Commerce
dc.titleDeterminants of Foreign Direct Investment in Malawi
dc.typeMaster Thesis
dc.type.qualificationlevelMasters
dc.type.qualificationnameMCom (Development Finance)
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