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This introduction of south Africa
that will monitor the conduct and impact offoreign This investors in Africa. Introductionaims to set out what foreign directinvestment (FDI) is and to define the two
forms in which it occurs. then will look atwhy Africa perceives FDI as important andexamine the initiatives undertaken by
African governments in attracting FDI. focuson the factors that influence/determinewhere FDI flows and why. we discusses theactual flows of FDI in terms of regions and
sectors.
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Foreign Direct Investment, or FDI, is a type ofinvestment that involves the injection
of foreign funds into an enterprise that operates in a
different country of origin from the investor.
if the Investors are granted management andvoting rights level of ownership is greater than orequal to 10% of ordinary shares. Sharesownership amounting to less that the stated
amount is termed portfolio investment and is notcategorized as FDI
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Objective of the StudyThe present study has been undertaken with a analysis
of status of FDI in India and made some policyrecommendation to boost flow of FDI to south Africa.Thus the objectives of the study can be enumerated
as follows:
a) To analyze the pattern and direction of FDI flow in southAfrica.
b) To review FDI policy of south Africa.e) To address various issue and concern relating to FDI.f) To make policy recommendation to improve the
level of FDI.
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Period of study and Data AnalysisThe reference period is restricted from 1970 to 2009. To have an
idea about the status of FDI in India trend analysis has been
conducted. For this purpose parameter
such as FDI,GDP,Export and Import. An attempt to show the changein FDI due to these factors. Gross Fixed Capital Formation, FDI as
percentage of Gross Fixed Investment and FDI per head are used to
present better picture of flow of FDI in the country
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YEAR Foreign direct investment Imports of goods and Exports of goods and
, net inflows (% of GDP) services (% of GDP) services (% of GDP)
1970 1.868499971 25.33812774 21.8043931
1971 1.315788904 26.08234246 21.88737985
1972 0.554277908 22.81702437 25.34946334
1973 0.096251278 22.76089227 25.3596761
1974 1.948346088 28.54553617 27.9812163
1975 0.508728753 30.15774164 27.69095596
1976 0.051867231 28.96135768 27.73923817
1977 -0.309389751 25.22693521 30.23846488
1978 -0.241018925 25.64694426 32.36249132
1979 -0.866241657 25.76645425 35.21019134
1980 -0.012761706 27.34895616 35.3802016
Status of FDI in south Africa
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-2
-1
0
1
2
3
4
5
6
7
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
Foreign direct investment , net
inflows (% of GDP)
Foreign direct
investment , net
inflows (% of GDP)
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-2
-1
0
1
2
3
4
5
6
7
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
Foreign direct investment , net
inflows (% of GDP)
Foreign direct
investment , net
inflows (% of GDP)
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0
5
10
15
20
25
30
35
40
1970
1973
1976
1979
1982
1985
1988
1991
1994
1997
2000
2003
2006
2009
Exports of goods and services (% of
GDP)
Exports of goods and
services (% of GDP)
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SUMMARY
OUTPUT
Regression
Statistics
Multiple R 0.461854206R Square 0.213309308
Adjusted R
Square
0.170785486
Standard Error 1.178877361
Observations 40
ANOVA
df SS MS F Significan
ce F
Regression 2 13.942632
27
6.9713161
35
5.0162309
38
0.011813
38
Residual 37 51.420817
77
1.3897518
32
Total 39 65.363450
04
Coefficients Standard t Stat P-value Lower Upper 95% Lower Upper
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FORECASTING
fdi=INTERCEPT+B1(IMPACT)+B(EXPORT)
so, fdi=intercept+(.00329)import
now we forecast the fdi by lineal regression method2010 y=-.739+.00329*35.55 =-26.1544912011 y=-.739+.00329*36.75 =-27.0373432012 y=-.739+.00329*37.95 =-27.9201952013 y=-.739+.00329*39.15 =-28.803047
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Patten and direction of south AfricaFDI of south Africa is stated dejecting 1970 and a sudden increase at1972and again fall at 1973 to 1975 and it going decreases vary badlyat the time of 1978 Upton 1994 and again raised of south Africa.
IMPACT OF SOUTH AFRICAIS WHICH are many fluctuation is impact of south Africa some thing itis increase sometime it is decrees.
EXPACTIS 1970 IT STATED increases is 1980 this is he peak him of expectthis.
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Refrences
Nature and Source of DataThe present study is of analytical nature and makes use
of secondary data. The relevant
secondary data are collected from various publicationsof Government of India,World data bank, Ebscohost and UNCTAD etc.