TITLE:
Literature Review on Chinese Foreign Direct Investment in the South African Mining Sector: Determinants and Development
AUTHORS:
Makatleho Georginah Domela, Tian Ze, Zaki Zakirullah
KEYWORDS:
Chinese FDI, South Africa’s Mining Sector, Determinants and Development
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.11 No.10,
October
26,
2023
ABSTRACT: Foreign
Direct Investment (FDI) is an important contributor for the global economies to
strengthen their hold in the race for attainment of resources. For the host
country, it is a source of maintaining economic stability and sustenance as
most of the host countries are either under developed or developing. South
Africa is among one of the most attractive destination for FDI where majority
of the global powers including USA, China, and Russia etc. In the recent years,
China became the largest investor in South Africa especially in the mining
sector due to its dependence on the rich South African natural resources
present in the mining. These FDI are important to maintain billion-dollar
industry of Chinese consumer goods. For the host country South Africa, the sustenance of economic stability is
greatly dependent on FDI. Although of great importance to the investor and host
country, there are a number of determinants that affect
FDI in a host country. These determinants are studied extensively in previous
researches with different context and are
identified as Gross Domestic Product (GDP), social security, wage labor,
economical situations, inflation, interest rates, trades openness, the
availability of natural resources etc. However, the specific reference to
mining sector in South Africa is the topic of interest for current research
considering only Chinese FDI. A variety of
determinants were investigated through assessing previous literature
leading to the identified determinants including Inflation, trade openness, natural
resources and political stability which had a direct effect on the Chinese FDI
in South Africa’s mining sector. This paper evaluated each of these determinants in
detail and provided insight into the area of interest.