The impact of foreign direct investment on economic growth in Lesotho
| dc.contributor.advisor | Nikolaidou, Eftychia | |
| dc.contributor.author | Nkhasi, Rethabile | |
| dc.date.accessioned | 2025-09-15T14:45:26Z | |
| dc.date.available | 2025-09-15T14:45:26Z | |
| dc.date.issued | 2025 | |
| dc.date.updated | 2025-09-15T14:03:38Z | |
| dc.description.abstract | This study evaluates the impact of the inflow of foreign direct investment (FDI) on Lesotho's economic growth in both the short- and long-run from 1977 to 2020. Three versions of the exogenous model guided by Solow (1956), Mankiw Gregory et al. (1992), and World Bank (1990) and augmented by FDI are used and then estimated by the Auto-Regressive Distributed Lag (ARDL) approach to cointegration. The findings show that FDI's influence on economic growth is negligible, while capital investment (i.e. gross fixed capital formation) and human capital induce economic growth in both the long-run and the short-run. It is also noted that population growth is detrimental to economic growth in both periods whereas trade openness only exerts a positive influence on economic growth in the long-run. The policy implications that are derived from this study suggest amendments in land allocation policies and increased governmental support for the investment promotion agency, LNDC, which currently relies on limited income sources. Moreover, the paper recommends that policymakers boost technological progress by regularly updating school curricula and promoting trade, particularly in tech-intensive sectors. | |
| dc.identifier.apacitation | Nkhasi, R. (2025). <i>The impact of foreign direct investment on economic growth in Lesotho</i>. (). Universiy of Cape Town ,Faculty of Commerce ,School of Economics. Retrieved from http://hdl.handle.net/11427/41818 | en_ZA |
| dc.identifier.chicagocitation | Nkhasi, Rethabile. <i>"The impact of foreign direct investment on economic growth in Lesotho."</i> ., Universiy of Cape Town ,Faculty of Commerce ,School of Economics, 2025. http://hdl.handle.net/11427/41818 | en_ZA |
| dc.identifier.citation | Nkhasi, R. 2025. The impact of foreign direct investment on economic growth in Lesotho. . Universiy of Cape Town ,Faculty of Commerce ,School of Economics. http://hdl.handle.net/11427/41818 | en_ZA |
| dc.identifier.ris | TY - Thesis / Dissertation AU - Nkhasi, Rethabile AB - This study evaluates the impact of the inflow of foreign direct investment (FDI) on Lesotho's economic growth in both the short- and long-run from 1977 to 2020. Three versions of the exogenous model guided by Solow (1956), Mankiw Gregory et al. (1992), and World Bank (1990) and augmented by FDI are used and then estimated by the Auto-Regressive Distributed Lag (ARDL) approach to cointegration. The findings show that FDI's influence on economic growth is negligible, while capital investment (i.e. gross fixed capital formation) and human capital induce economic growth in both the long-run and the short-run. It is also noted that population growth is detrimental to economic growth in both periods whereas trade openness only exerts a positive influence on economic growth in the long-run. The policy implications that are derived from this study suggest amendments in land allocation policies and increased governmental support for the investment promotion agency, LNDC, which currently relies on limited income sources. Moreover, the paper recommends that policymakers boost technological progress by regularly updating school curricula and promoting trade, particularly in tech-intensive sectors. DA - 2025 DB - OpenUCT DP - University of Cape Town KW - FDI KW - economic growth KW - ARDL KW - exogenous growth theory KW - Lesotho LK - https://open.uct.ac.za PB - Universiy of Cape Town PY - 2025 T1 - The impact of foreign direct investment on economic growth in Lesotho TI - The impact of foreign direct investment on economic growth in Lesotho UR - http://hdl.handle.net/11427/41818 ER - | en_ZA |
| dc.identifier.uri | http://hdl.handle.net/11427/41818 | |
| dc.identifier.vancouvercitation | Nkhasi R. The impact of foreign direct investment on economic growth in Lesotho. []. Universiy of Cape Town ,Faculty of Commerce ,School of Economics, 2025 [cited yyyy month dd]. Available from: http://hdl.handle.net/11427/41818 | en_ZA |
| dc.language.iso | en | |
| dc.language.rfc3066 | eng | |
| dc.publisher.department | School of Economics | |
| dc.publisher.faculty | Faculty of Commerce | |
| dc.publisher.institution | Universiy of Cape Town | |
| dc.subject | FDI | |
| dc.subject | economic growth | |
| dc.subject | ARDL | |
| dc.subject | exogenous growth theory | |
| dc.subject | Lesotho | |
| dc.title | The impact of foreign direct investment on economic growth in Lesotho | |
| dc.type | Thesis / Dissertation | |
| dc.type.qualificationlevel | Masters | |
| dc.type.qualificationlevel | MCom |