Is there a link between BRIC foreign direct investment and SADC export performance?

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Authors

Le Clus-Rossouw, Danielle
Viviers, Wilma
Loots, Elsabé

Journal Title

Journal ISSN

Volume Title

Publisher

Routledge

Abstract

The BRICS (Brazil, Russia, India, China and South Africa) countries have agreed to strengthen their economic ties, thus paving the way for enhanced trade and investment performance. South Africa’s strategic value in BRICS is that it is a gateway to the opportunity-rich Southern African Development Community (SADC). By using South Africa as a production hub for exports to the surrounding region, foreign investors would have ready access to neighbouring markets. This article addresses the question of whether, and in what ways, foreign direct investment (FDI) from the BRIC (Brazil, Russia, India and China) countries to the SADC influences the SADC’s export performance. A series of empirical analyses revealed a positive causation between BRIC FDI and SADC exports, offering a clear incentive for the SADC to rejuvenate its trade and investment policies and structures, and strengthen its ties with BRIC countries in the interests of attracting more FDI and building a strong and sustainable export sector.

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Keywords

Exports, Brazil, Russia, India, China and South Africa (BRICS), Southern African Development Community (SADC), Foreign direct investment (FDI)

Sustainable Development Goals

Citation

Danielle le Clus-Rossouw, Wilma Viviers & Elsabé Loots (2015) Is there a link between BRIC foreign direct investment and SADC export performance?, Development Southern Africa, 32:6, 658-674, DOI: 10.1080/0376835X.2015.1063985.