Understanding South Africa’s current account deficit: The role of foreign direct investment income

@inproceedings{Strauss2017UnderstandingSA,
  title={Understanding South Africa’s current account deficit: The role of foreign direct investment income},
  author={Ilan Strauss},
  year={2017}
}
This article highlights the prominence of net investment income payments made to foreign direct investors in South Africa’s current account deficit. After a brief history of South Africa’s balance of payments, we describe several factors driving the growth of South Africa’s direct investment assets and liabilities, including the roles of China and Africa as investment destinations and the relisting of major South African companies abroad. The slow accumulation of direct investment assets by… 
The Sources of International Investment Income in Emerging Market Economies
  • J. Joyce
  • Economics
    Review of International Economics
  • 2019
We investigate international investment income flows in 26 emerging market countries during the period of 1998-2015. Net investment income registered a deficit for this group of countries of between
Investor sentiment and foreign financial flows: Evidence from South Africa
Foreign financial flows to emerging markets have increasingly become important following the opening of financial markets globally. These financial flows are a function of a country’s fundamentals
Externally constrained growth: Testing the applicability of Thirlwall’s law in South Africa
ABSTRACT This study tests whether the performance of South Africa’s trade balance, that is, the country’s export and import performance, can effectively explain the economy’s growth rate. Formally,
Bank Credit and Aggregate Import Demand in South Africa: An Autoregressive Distributed Lag Approach
This study reformulated the aggregate import demand function for South Africa by incorporating a financial variable, bank credit. The study used the bounds testing approach for cointegration and the
SUSTAINABILITY OF CURRENT ACCOUNT DEFICITS IN BRICS COUNTRIES
In this article, sustainability of the current account deficit (CAD) for BRICS countries is analyzed in a nonlinear framework. In this respect, Harvey, Leybourne, and Xiao (2008) linearity test and
Essays on the impact of foreign direct investment in African economies
A dissertation submitted to the Faculty of Commerce, Law and Management, University of the Witwatersrand, Johannesburg, in fulfilment of the Requirements for the Degree of Doctor of Philosophy 19
South Africa's industrialisation strategy and import substitution
A research report submitted to the Faculty of Commerce, Law and Management of the University of Witwatersrand, Johannesburg in 50% requirement of the requirements of the degree of Master in
The welfare effects of FDI: A quantitative analysis
...
...

References

SHOWING 1-10 OF 24 REFERENCES
The Dark Side of Foreign Direct Investment: A South African Perspective
The current account in the balance of payments is always of interest to the international finance community and South Africa is no exception in this regard. The current account signals a country’s
The role of South African FDI in Southern Africa
Since 1994, the pivotal year in which South Africa held its first democratic elections, its companies have engaged in a sustained outward foreign direct investment (OFDI) thrust with substantial
The "Addiction" with FDI and Current Account Balance
The EU new member states (NMS) have been recipients of substantial net capital inflows in the form of FDI. Economic policy makers and development strategists often regard them as the pillar of the
South Africa's balance of payments 1946-1985
Economic activity and economic policy in South Africa are presently constrained by the low level of foreign exchange reserves and the need to meet the country's foreign debt commitments in 1990 and
The Changing Strategies of Large Corporations in South Africa Under Democracy and the Role of Competition Law
We assess the relationships between the strategies of large corporations, increased participation and investment in improved productive capabilities, and competition through a case study of South
Reinvested Earnings Bias, the 'Five Percent' Rule and the Interpretation of the Balance of Payments - with an Application to Transition Economies
We show that the imputation of reinvested profits of the subsidiaries of foreign firms as a debit item on a host country's balance of payments account tends to overstate the current account deficit.
The South African balance of payments in the 1990s
The most important development in South Africa in the 1990s was the adoption of a new constitutional dispensation. This impacted on every aspect of life in South Africa, including the economy in
Addressing Base Erosion and Profit Shifting
This work is published on the responsibility of the Secretary-General of the OECD. The opinions expressed and arguments employed herein do not necessarily reflect the official views of the
Annual Report 2012 -個人別教育研究報告-
Our school prides itself on providing the best opportunities for each child. The academic achievements have been and continue to be well above Western Australian and National averages, while the
Foreign Direct Investment Links between South Africa and China
  • Paper prepared for the African Economic Research Consortium project on China-Africa Economic Relations,
  • 2010
...
...