Original Research

The relative contribution of alternative capital flows to South Africa: An empirical investigation

Omolola Adeola, Meshach Aziakpono
Journal of Economic and Financial Sciences | Vol 10, No 1 | a4 | DOI: https://doi.org/10.4102/jef.v10i1.4 | © 2017 Omolola Adeola, Meshach Aziakpono | This work is licensed under CC Attribution 4.0
Submitted: 06 December 2017 | Published: 06 June 2017

About the author(s)

Omolola Adeola, Stellenbosch University, South Africa
Meshach Aziakpono, Stellenbosch University, South Africa

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The need for external capital flows to developing countries to supplement domestic savings for investment and growth cannot be over-emphasised, especially in Africa, where there are high levels of poverty and low domestic capacity to save. To achieve sustainable economic growth, countries require other sources of capital from outside the domestic economy. This study uses co-integration and error correction modelling techniques together with tests for weak exogeneity to analyse the effects of four major capital flows into South Africa. This is done for the period 1970 to 2012 in order to determine the relative contribution of these capital flows to South Africa


Capital flows; economic growth; South Africa; co-integration; foreign direct investment; remittances; economic systems


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1. Unlocking the relationship between capital flows and economic growth in a small open economy of Kenya: An empirical investigation
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doi: 10.1080/23322039.2022.2085608