| dc.creator | Qabhobho, Thobekile | |
| dc.creator | Nyarko Amoah, Edmund Vincent | |
| dc.creator | Doku, Isaac | |
| dc.date | 2022-09-09 | |
| dc.date.accessioned | 2022-09-26T20:22:37Z | |
| dc.date.available | 2022-09-26T20:22:37Z | |
| dc.identifier | https://lajtp.uchile.cl/index.php/LAJTP/article/view/66007 | |
| dc.identifier.uri | https://revistaschilenas.uchile.cl/handle/2250/209767 | |
| dc.description | This paper investigates the linkages between FDI, tradeopenness, and economic growth, and the role of exchangerate regime choice. To achieve this objective, the studyused a secondary data set for the period 1995 - 2018 for South Africa. The study employed the ARDL and Granger causality test. The results showed no Granger causality between GDP and FDI. Uni-directional Granger causality was found to flow from GDP to trade openness and FDI to exchange rate. A bi-directional causality was established between GDP and exchange rate, and between trade openness and exchange rate. A Gregory-Hansen cointegration test was introduced to handle the concept of regime changes in the current study. Findings from the ARDL with a known structural break for exchange rate regime choice revealed that exchange rate had a significant positive impact on economic growth in the short-run, whereas it had a significant negative impact on economic growth in the long-run. This implies that, during the initial stages of an exchange rate policy, the South African rand appreciated, leading to a boost in economic growth. A change from managed float exchange rate regime to a free float exchange rate regime caused a 1.49% increase in economic growth. This may be interpreted as an indication that the free float exchange rate is a better choice compared to a managed float exchange rate. To conclude, the paper discusses policy implications and suggestions to policymakers in South Africa. | en-US |
| dc.format | application/pdf | |
| dc.language | eng | |
| dc.publisher | Institute of International Studies, University of Chile | en-US |
| dc.relation | https://lajtp.uchile.cl/index.php/LAJTP/article/view/66007/71234 | |
| dc.rights | Copyright (c) 2022 Thobekile Qabhobho, Edmund Vincent Nyarko Amoah, Isaac Doku | en-US |
| dc.rights | http://creativecommons.org/licenses/by-nc/4.0 | en-US |
| dc.source | Latin American Journal of Trade Policy; Vol. 5 No. 13 (2022): Latin American Journal of Trade Policy | en-US |
| dc.source | Latin American Journal of Trade Policy; Vol. 5 Núm. 13 (2022): Latin American Journal of Trade Policy | es-ES |
| dc.source | 0719-9368 | |
| dc.subject | Economic growth; Exchange rate regimes; Foreign direct investment; Trade openness | en-US |
| dc.title | Linkages between Foreign Direct Investment, Trade Openness and Economic Growth in South Africa: Does Exchange Rate Regime Choice Matter? | en-US |
| dc.type | info:eu-repo/semantics/article | |
| dc.type | info:eu-repo/semantics/publishedVersion | |
