Foreign Direct Investment (FDI) has become the main source of developmentcapital for emerging markets in the current globalised world. Previousresearches have found that fiscal incentives capability to attract FDI is verylimited, while removal of policy restriction is a determinant in attracting FDI. Atthe same time, South Africa has embarked on a major transformationprogramme Broad-Based Black Economic Empowerment which has as itsmain target the need to increase black peoples participation in the economyand to reduce socio-economic inequality. In this context, this research attemptsto evaluate the impact of the Broad-Based BEE programme on South Africascapability to attract FDI.
This quantitative research was done using quasi-experimental methodology,comparing FDI inflows into South Africa with that of other emerging countries ofa similar level of development, such as Brazil, Mexico, Chile, Nigeria andBotswana, and against the African continent as a whole.
The tests performed give an indication that Broad-Based BEE is indeedimpacting on South Africas capability to attract FDI, and also that South Africais losing competitiveness in attracting FDI on the continent. Since the resultscannot be generalised nor prove a causal relationship, the main purpose of thisresearch is to enrich the discussion of how to attract more FDI inflows intoSouth Africa, possibly through adjusting the Broad-Based BEE policies, whichwill contribute to building national competitiveness.
Copyright © 2008, University of Pretoria. All rights reserved. The copyright in this work vests in the University of Pretoria. No part of this work may be reproduced or transmitted in any form or by any means, without the prior written permission of the University of Pretoria
Please cite as follows:
Veloso, VV 2008, The impact of broad-based black economic empowerment on foreign direct investment inflows into South Africa, MBA dissertation, University of Pretoria, Pretoria, viewed yymmdd < http://upetd.up.ac.za/thesis/available/etd-03172010-132714/ >
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