دور السياسة الضريبية في جذب الاستثمار الأجنبي المباشر إلى جنوب أفريقيا : دراسة قياسيه للفترة (1994-2019)‎

Abstract EN

Foreign direct investment is an important driving mean of economic growth in the least developed countries, as it plays a major role in providing the necessary funding for that.

the FDI system in South Africa has undergone a major transformation and a lot of liberalization since the country successfully moved towards democratic government, and accordingly the South African government has undertaken a set of tax reforms in order to be in a good competitive position that allows it to compete to attract the largest possible amount of direct foreign investments, as the South African government realized the need to pay attention to tax systems and use tax incentives as one of the most important means to attract foreign direct investment into the country.

this research study aims to measure the impact of tax policy on attracting foreign direct investment in South Africa during the period (1994-2019), through the use of an autoregressive model with a distributed time gap (ARDL).

the standard study found that tax incentives in South Africa had an impact on attracting foreign direct investment by reducing the corporate tax rate, and this is known as the direct effect of tax incentives.

where there was an inverse relation between the corporate tax rate and foreign direct investment.

it also found an indirect effect on attracting foreign direct investment to South Africa through some variables, such as the GDP variable, the inflation rate variable and the trade openness variable, as there was a direct relation between them and foreign direct investment, while the relation with the unemployment rate variable and the growth rate variable was inverse.

the study recommends to work on developing, strengthening and modernizing the infrastructure of the economy because of its positive impact on attracting foreign direct investment flows in South Africa.

as well as re-examining the structure of financial and tax incentives for local and foreign investors, as they are insufficient in attracting foreign direct investment, and rationalizing them by linking them to economic priorities and investment decisions that serve development goals.