Annual Forum Papers

On the Determinants of Domestic and Foreign Investment to SADC:

  • Year: 2002
  • Author(s): Susanna Wolf
  • Countries and Regions: Southern African Development Community (SADC)

A close look at the specific causes of domestic and foreign private investment in the SADC countries is needed. This paper has the aim to look especially at those factors that are under direct control of governments like infrastructure and regional integration and where decisions have to be made in the coming years. In the existing literature on the determinants of investment these aspects haven't been investigated in detail. Therefore this paper focuses on the effects of deepening regional integration and improvement of infrastructure. It covers domestic as well as foreign investment and identifies policy measures for improving the attraction of investment by focusing on investment determinants that are under control of the SADC governments. Only if effects of FDI under specific circumstances are well understood investment policies can be designed that will attract investment in those sectors that can bring the highest benefits to the country and increase the potential for sustainable growth.