Analysing the Impact of Foreign Direct Investment on Economic Growth in South Africa: The Role of Political Stability

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Economic growth is negatively influenced by the interplay of foreign direct investment and political stability.
The ARDL model captures robust relationships among economic growth, foreign direct investment, and other factors.
While human capital positively impacts long-term growth, labour force expansion harms productivity in both short and long term.
Findings suggest that effective FDI policies and labour market reforms are crucial for sustainable economic development.

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Analysis shows foreign direct investment affects economic growth in South Africa, highlighting the role of political stability.

Mthimkhulu et al. (2025) studied this question.

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