Publication

This paper examines the role foreign direct investment (FDI) can play in creating potential vulnerabilities in middle-income emerging countries such as South Africa during an economic downturn. It explores the global trend for non-financial corporations to structure their investment decisions around maximizing shareholder value rather than focusing on long-term growth perspectives. The author concludes that, instead, FDI should target employment creation and building links between domestic enterprises in order to allow emerging economy states to benefit from the markets.