What Drives Foreign Portfolio Investment Flows in South Africa?

Öz

Güney Afrika'da Yabancı Portföy Yatırım Akışına Neden Olan Faktörler Nelerdir?

Öz

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.

Anahtar Kelimeler

• Foreign portfolio investment,Push and pull factors,South Africa

Kaynakça

1. Doç. Dr. Derviş Kırıkkaleli (European University of Lefke), Doç. Dr. Nezahat Küçük Doğan (International Final University), Doç. Dr. Çağay Coşkuner (Eastern Mediterranean University)