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What Drives Foreign Portfolio Investment Flows in South Africa?
- Source :
-
Journal of Yaşar University / Yaşar Üniversitesi E-Dergisi . Apr2020, Vol. 15 Issue 58, p368-380. 13p. - Publication Year :
- 2020
-
Abstract
- The aim of this study is to examine the macroeconomic indicators that pull and/or push foreign portfolio investment (FPI) inflows in South Africa. The ARDL method of co-integration and the bounds test are employed to establish a dynamic relationship between the macroeconomic indicators. The bounds test revealed that there is a long run relationship between FPI and its regressors where all the push and pull variables determine the FPI significantly. The short-run relationship between the FPI and its regressors are also estimated alongside with the rate at which diverging variables return to equilibrium after a short-run shock. Both pull and push variables are significant determinants of FPI in the short-run and it returns to the long-run equilibrium at the speed of 73 percent after a short-run shock. [ABSTRACT FROM AUTHOR]
- Subjects :
- *FOREIGN investments
*INVESTMENTS
Subjects
Details
- Language :
- English
- ISSN :
- 1305970X
- Volume :
- 15
- Issue :
- 58
- Database :
- Academic Search Index
- Journal :
- Journal of Yaşar University / Yaşar Üniversitesi E-Dergisi
- Publication Type :
- Academic Journal
- Accession number :
- 144290691