Wpływ bezpośrednich inwestycji zagranicznych na nierówności w Republice Południowej Afryki z uwzględnieniem struktury rasowej
DOI:
https://doi.org/10.12797/Politeja.22.2025.96.1.04Keywords:
inequalities, FDI, South AfricaAbstract
THE IMPACT OF FOREIGN DIRECT INVESTMENT ON INEQUALITY IN SOUTH AFRICA WITH A FOCUS ON RACIAL STRUCTURE
South Africa remains one of the most stratified countries in the world according to almost all available measures of inequality. This is despite the fact that the system of racial segregation known as apartheid, which economically and politically discriminated against the non-white population, collapsed three decades ago. Moreover, inequality persists, reinforcing South Africa’s economic structure and economically marginalizing the Black population. At the same time, South Africa’s economy has many assets, such as raw material deposits, a large market, and a solid industrial base, and is generally seen as an investment gateway to the African continent. Despite its deteriorating economic outlook, it has been receiving the most foreign direct investment (FDI) of any African country for years. After the political transition, FDI was viewed as the engine of development and the key to solving South Africa’s problems, including extreme inequality and unemployment. It is therefore reasonable to reflect on the impact of FDI on inequality in South Africa. The FDI-inequality nexus has been addressed by relatively few studies, and to the best of the authors’ knowledge, no studies specifically dedicated to South Africa exist. Furthermore, the results of studies using widely varying methodologies are inconclusive, which is not surprising given the high complexity of the relationship between FDI inflows and inequality. This article examines the relationship between FDI inflows and inequality in South Africa. It reviews the relevant literature to conceptualize the research, identify the mechanisms of FDI’s impact on inequality, and map the key variables determining this causal relationship.
Downloads
References
Acemoglu D., Robinson J.A., The Rise and Decline of General Laws of Capitalism, „Journal of Economic Perspectives” 2015, vol. 29, nr 1, https://doi.org/10.1257/jep.29.1.3. DOI: https://doi.org/10.1257/jep.29.1.3
Ally S., Lissoni A., Let’s Talk about Bantustans, „South African Historical Journal” 2012, vol. 64, nr 1, https://doi.org/10.1080/02582473.2012.655947. DOI: https://doi.org/10.1080/02582473.2012.655947
Arvanitis A., Foreign Direct Investment in South Africa: Why Has It Been So Low?, [w:] Post-Apartheid South Africa. The First Ten Years, red. M. Nowak, L.A. Ricci, Washington, DC 2006.
Atkinson A.B., On the Measurement of Inequality, „Journal of Economic Theory” 1970, vol. 2, nr 3, https://doi.org/10.1016/0022-0531(70)90039-6. DOI: https://doi.org/10.1016/0022-0531(70)90039-6
Atkinson A.B., The Economics of Inequality, Oxford–New York, NY 1983.
Basu P., Guariglia A., Foreign Direct Investment, Inequality, and Growth, „Journal of Macroeconomics” 2007, vol. 29, nr 4, https://doi.org/10.1016/j.jmacro.2006.02.004. DOI: https://doi.org/10.1016/j.jmacro.2006.02.004
Bell T., Farrell G., The Minerals-Energy Complex and South African Industrialization, „Development South Africa” 1997, vol. 14, nr 4, https://doi.org/10.1080/03768359708439989. DOI: https://doi.org/10.1080/03768359708439989
Berg A.G., Ostry J.D., Inequality and Unsustainable Growth: Two Sides of the Same Coin?, „IMF Staff Discussion Note” 2011, 8 IV, https://doi.org/10.5089/9781463926564.006. DOI: https://doi.org/10.5089/9781463926564.006
Berg S. van der, Burger R., Louw M., Post-Apartheid South Africa Poverty and Distribution Trends in an Era of Globalization, „UNU-WIDER, Research Paper” 2007, nr 57.
Bhandari B., Effect of Inward Foreign Direct Investment on Income Inequality in Transition Countries, „Journal of Economic Integration” 2007, vol. 22, nr 4, https://doi.org/10.11130/jei.2007.22.4.888. DOI: https://doi.org/10.11130/jei.2007.22.4.888
Bhorat H. i in., Characterisation, Definition, and Measurement Issues of the Middle Class in Sub-Saharan Africa, „Development Southern Africa” 2023, vol. 40, nr 1, https://doi.org/10.1080/0376835X.2021.1945912. DOI: https://doi.org/10.1080/0376835X.2021.1945912
Bukowski P., Novokmet F., Between Communism and Capitalism: Long-Term Inequality in Poland, 1892-2015, „Journal of Economic Growth” 2021, vol. 26, https://doi.org/10.1007/s10887-021-09194-1. DOI: https://doi.org/10.1007/s10887-021-09190-1
Bukowski P., Sawulski J., Brzeziński M., Nierówności po polsku. Dlaczego trzeba się nimi zająć, jeśli chcemy dobrej przyszłości nad Wisłą, Warszawa 2024.
Card D., Lemieux T., Riddell, W.C., Unions and Wage Inequality: The Roles of Gender, Skill and Public Sector Employment, „The Canadian Journal of Economics / Revue Canadienne d’Economique” 2020, vol. 53, nr 1, https://doi.org/10.1111/caje.12432. DOI: https://doi.org/10.1111/caje.12432
Carmody P., Between Globalisation and (Post) Apartheid: The Political Economy of Restructuring in South Africa, „Journal of Southern African Studies” 2002, vol. 28, nr 2, https://doi.org/10.1080/03057070220140694. DOI: https://doi.org/10.1080/03057070220140694
Chatterjee A., Czajka L., Gethin, A., Wealth Inequality in South Africa, 1993-2017, „The World Bank Economic Review” 2022, vol. 36, nr 1, https://doi.org/10.1093/wber/lhab012. DOI: https://doi.org/10.1093/wber/lhab012
Clark H.R., Bogran A., Foreign Direct Investment in South Africa (1998-1999), „Denver Journal of International Law and Policy” 2000, vol. 27, nr 3.
Cooper A.F. The Multiple Faces of South African Foreign Policy, „International Journal” 1998, vol. 53, nr 4, https://doi.org/10.2307/40203723. DOI: https://doi.org/10.2307/40203723
Department of Employment and Labour. Annual Labour Market Bulletin, 2020-2021, Pretoria 2021.
Driffield N., Taylor, K., FDI and the Labour Market: A Review of the Evidence and Policy Implications, „Oxford Review of Economic Policy” 2000, vol. 16, nr 3, https://doi.org/10.1093/oxrep/16.3.90. DOI: https://doi.org/10.1093/oxrep/16.3.90
Eligon J., Chutel L., Leatherby L., Has South Africa Truly Defeated Apartheid?, „New York Times” 2024, 26 IV.
Ellis S., The ANC in Exile, „African Affairs” 1991, vol. 90, nr 360, https://doi.org/10.1093/oxfordjournals.afraf.a098442. DOI: https://doi.org/10.1093/oxfordjournals.afraf.a098442
Feenstra R.C., Hanson G.H., Foreign Direct Investment and Relative Wages: Evidence from Mexico’s Maquiladoras, „Journal of International Economics” 1997, vol. 42, nr 3-4, https://doi.org/10.1016/S0022-1996(96)01475-4. DOI: https://doi.org/10.1016/S0022-1996(96)01475-4
Figini P., Görg H., Multinational Companies and Wage Inequality in the Host Country: The Case of Ireland, „Weltwirtschaftliches Archiv” 1999, vol. 135, nr 4, https://doi.org/10.1007/BF02707386. DOI: https://doi.org/10.1007/BF02707386
Fine B., Rustomjee Z., The Political Economy of South Africa: From Minerals-Energy Complex to Industrialisation, London 1996.
Foster S., Wage Inequality, Firm Characteristics, and Firm Wage Premia in South Africa, „WIDER Working Paper” 2023, nr 131, https://doi.org/10.35188/UNU-WIDER/2023/439-7. DOI: https://doi.org/10.35188/UNU-WIDER/2023/439-7
Fraser L., Big Businesses Calling It Quits in South Africa, BusinessTech, 2024, 13 V, [online] https://businesstech.co.za/news/business/771597/big-businesses-calling-it-quits-insouth-africa/.
Freeman R.B., Unionism and the Dispersion of Wages, „ILR Review” 1980, vol. 34, nr 1, https://doi.org/10.1177/001979398003400101. DOI: https://doi.org/10.2307/2522631
Gelb S., Black A., Foreign Direct Investment in South Africa, [w:] Investment Strategies in Emerging Markets, red. S. Estrin, K.E. Meyer, Cheltenham 2004, https://doi.org/10.4337/9781781956465.00013. DOI: https://doi.org/10.4337/9781781956465.00013
Globalisation and Inequality: The New Wave, „The Economist” 2016, 2 IV, [online] https://www.economist.com/books-and-arts/2016/04/02/the-new-wave.
Gossel S., FDI and Inequality in Sub-Saharan Africa: Does Democracy Matter?, „International Journal of Emerging Markets” 2022, vol. 19, nr 1, https://doi.org/10.1108/IJOEM-10-2020-1259. DOI: https://doi.org/10.1108/IJOEM-03-2021-0321
Görg H., Greenaway D., Much Ado about Nothing? Do Domestic Firms Really Benefit from Foreign Direct Investment?, „The World Bank Research Observer” 2004, vol. 19, nr 2, https://doi.org/10.1093/wbro/lkh019. DOI: https://doi.org/10.1093/wbro/lkh019
Harris L., South Africa’s External Debt Crisis, „Third World Quarterly” 1986, vol. 8, nr 3, https://doi.org/10.1080/01436598608419926.
Hentz J.J., The Two Faces of Privatisation: Political and Economic Logics in Transitional South Africa, „The Journal of Modern African Studies” 2000, vol. 38, nr 2, https://doi.org/10.1017/S0022278X00003311. DOI: https://doi.org/10.1017/S0022278X00003311
Heese K., Foreign Direct Investment in South Africa (1994-9) – Confronting Globalisation, „Development Southern Africa” 2000, vol. 17, nr 3, https://doi.org/10.1080/713661416. DOI: https://doi.org/10.1080/713661416
Jensen N., Rosas G., Foreign Direct Investment and Income Inequality in Mexico, 1990-2000, „International Organization” 2007, vol. 61, nr 3. DOI: https://doi.org/10.1017/S0020818307070178
Johnson-Lans S., Jones P., Foreign Direct Investment and Racial Wage Inequality: Evidence from South Africa, [w:] Wage Inequality in Africa, red. S. Johnson-Lans, London 2017, https://doi.org/10.1007/978-3-319-51565-6. DOI: https://doi.org/10.1007/978-3-319-51565-6
Kaplinsky R., Manning C., Concentration, Competition Policy and the Role of Small and Medium-Sized Enterprises in South Africa’s Industrial Development, „The Journal of Development Studies” 1998, vol. 35, nr 1, https://doi.org/10.1080/00220389808422558. DOI: https://doi.org/10.1080/00220389808422558
Kaur R., Wall R., Fransen J., The Impact of FDI on Income Inequality in Africa, African Development Bank, 2018.
Kerr A., Wittenberg M., Union Wage Premia and Wage Inequality in South Africa, „Economic Modelling” 2021, vol. 97, https://doi.org/10.1016/j.econmod.2020.12.005. DOI: https://doi.org/10.1016/j.econmod.2020.12.005
Laurence H., South Africa’s External Debt Crisis, „Third World Quarterly” 1986, vol. 8, nr 3, https://doi.org/10.1080/01436598608419926. DOI: https://doi.org/10.1080/01436598608419926
Leibbrandt M., Finn A., Woolard, I., Describing and Decomposing Post-Apartheid Income Inequality in South Africa, „Development Southern Africa” 2012, vol. 29, nr 1, https://doi.org/10.1080/0376835X.2012.645639. DOI: https://doi.org/10.1080/0376835X.2012.645639
Leibbrandt M. i in., Trends in South African Income Distribution and Poverty since the Fall of Apartheid, „OECD Social, Employment and Migration Working Papers” 2010, nr 101, https://doi.org/10.35648/20.500.12413/11781/ii079. DOI: https://doi.org/10.35648/20.500.12413/11781/ii079
Levy P.I., Sanctions on South Africa: What Did They Do?, „American Economic Review” 1999, vol. 89, nr 2, https://doi.org/10.1257/aer.89.2.415. DOI: https://doi.org/10.1257/aer.89.2.415
Lewis S., The Economics of Apartheid, New York, NY 1990.
Lipsey R.E., Sjöholm F., FDI and Wage Spillovers in Indonesian Manufacturing, „Review of World Economics” 2004, vol. 140, nr 2. DOI: https://doi.org/10.1007/BF02663651
Mah J.S., The Impact of Globalization on Income Distribution: the Korean Experience, „Applied Economics Letters” 2002, vol. 9, nr 15, https://doi.org/10.1080/13504850210149124. DOI: https://doi.org/10.1080/13504850210149124
Mandela N., South Africa’s Future Foreign Policy, „Foreign Affairs” 1993, vol. 72, nr 5, https://doi.org/10.2307/20045816. DOI: https://doi.org/10.2307/20045816
Markusen J.R., Venables A.J., The Role of Multinational Firms in the Wage-Gap Debate, „Review of International Economics” 1997, vol. 5, nr 4, https://doi.org/10.1111/1467-9396.00068. DOI: https://doi.org/10.1111/1467-9396.00068
McGregor R., Who Owns Whom, Juta 1994. DOI: https://doi.org/10.1007/978-94-011-1464-6
Michie J., Padayachee V., Three Years after Apartheid: Growth, Employment and Redistribution?, „Cambridge Journal of Economics” 1998, vol. 22, nr 5, https://doi.org/10.1093/cje/22.5.623. DOI: https://doi.org/10.1093/cje/22.5.623
Milanovic B., Can We Discern the Effect of Globalization on Income Distribution? Evidence from Household Surveys, „The World Bank Economic Review” 2005, vol. 19, nr 1, https://doi.org/10.1093/wber/lhi003. DOI: https://doi.org/10.1093/wber/lhi003
Orthofer A., Wealth Inequality in South Africa: Insights from Survey and Tax Data, „REDI3x3Working Paper” 2016, nr 15, June.
People of South Africa, South African Government, [online] https://www.gov.za/about-sa/south-africas-people.
Piketty T., Kapitał w XXI wieku, przeł. A. Bilik, Warszawa 2015.
Piketty T., Nelson Mandela Annual Lecture 2015, University of Johannesburg’s Soweto campus, 3 X 2015, [online] https://www.nelsonmandela.org/news/entry/transcript-ofnelson-mandela-annual-lecture-2015.
Polus A., Kopiński D., Tycholiz W., Reproduction and Convertibility: Examining Wealth Inequalities in South Africa, „Third World Quarterly” 2020, vol. 42, nr 2, https://doi.org/10.1080/01436597.2020.1800450. DOI: https://doi.org/10.1080/01436597.2020.1800450
Reuveny R., Li Q., Economic Openness, Democracy, and Income Inequality: An Empirical Analysis, „Comparative Political Studies” 2003, vol. 36, nr 5, https://doi.org/10.1177/0010414003036005004. DOI: https://doi.org/10.1177/0010414003036005004
Rodrik D., Has Globalization Gone Too Far?, Washington, DC 1997. DOI: https://doi.org/10.2307/41165897
Schiel R., Leibbrandt M., Lam D., Assessing the Impact of Social Grants on Inequality: A South African Case Study, „WIDER Working Paper” 2014, nr 160, https://doi.org/10.35188/UNU-WIDER/2014/881-0. DOI: https://doi.org/10.35188/UNU-WIDER/2014/881-0
Seekings J., Nattrass N., Class, Race, and Inequality in South Africa, New Haven, CT 2005, https://doi.org/10.12987/yale/9780300108927.001.0001. DOI: https://doi.org/10.12987/yale/9780300108927.001.0001
Seidman A.W., Seidman N., South Africa and US Multinational Corporations, Westport, CT1977.
Shifa M., David A., Leibbrandt M., Spatial Inequality Through the Prism of a Pandemic: Covid-19 in South Africa, „Scientific African” 2021, vol. 13, September, https://doi.org/10.1016/j.sciaf.2021.e00949. DOI: https://doi.org/10.1016/j.sciaf.2021.e00949
Southall R., The New Black Middle Class in Southern Africa, Auckland Park 2016.
Statistics South Africa, Inequality Trends in South Africa: A Multidimensional Diagnostic of Inequality, Report Nr 03-10-19, 2019.
Streak J.C., The Gear Legacy: Did Gear Fail or Move South Africa Forward in Development?, „Development Southern Africa” 2004, vol. 21, nr 2, https://doi.org/10.1080/0376835042000219541. DOI: https://doi.org/10.1080/0376835042000219541
Suanes M., Foreign Direct Investment and Income Inequality in Latin America: A Sectoral Analysis, „Revista CEPAL” 2016, nr 118, https://doi.org/10.18356/13c68e36-en. DOI: https://doi.org/10.18356/13c68e36-en
Sulla V., Zikhali P., Cuevas P.F., Inequality in Southern Africa: An Assessment of the Southern African Customs Union, Washington, DC 2022.
The Case for Better FDI Data in South Africa, The South African Institute of International Affairs, [online] https://saiia.org.za/research/the-case-for-better-fdi-data-in-south-africa/.
The Freedom Charter, 26 June 1955, As adopted at the Congress of the People, Kliptown, [online] https://www.anc1912.org.za/the-freedom-charter-2/, 30 IX 2024.
Tsai P.-L., Foreign Direct Investment and Income Inequality: Further Evidence, „World Development” 1995, vol. 23, nr 3, https://doi.org/10.1016/0305-750X(95)00136-Z. DOI: https://doi.org/10.1016/0305-750X(95)00136-Z
Turok B., South Africans Should Not Be Polite about Inequality, [w:] Confronting Inequality: The South African Crisis, red. M.N. Smith, Auckland Park 2018.
UCT Liberty Institute of Strategic Marketing, 2022 Black Middle Class Report.
Velde D.W. te, Foreign Direct Investment and Income Inequality in Latin America: Experiences and Policy Implications, Documento de Trabajo, Universidad Católica Boliviana, Instituto de Investigaciones Socio-Económicas, 2003.
Velde D.W. te, Morrissey O., Spatial Inequality for Manufacturing Wages in Five African Countries, „WIDER Working Paper”, Series DP2003-66.
Visagie, J., Turok, I., Rural–Urban Inequalities Amplified by COVID-19: Evidence from South Africa, „Area Development and Policy” 2021, vol. 6, nr 1, https://doi.org/10.1080/23792949.2020.1851143. DOI: https://doi.org/10.1080/23792949.2020.1851143
Vilakazi T., Bosiu T., Black Economic Empowerment, Barriers to Entry, and Economic Transformation in South Africa, [w:] Structural Transformation in South Africa, red. A. Andreoni i in., Oxford 2021, https://doi.org/10.1093/oso/9780192894311.003.0009. DOI: https://doi.org/10.1093/oso/9780192894311.003.0009
Wittenberg M. i in., Drivers of Inequality In South Africa, „WIDER Working Paper” 2018, nr 162, https://doi.org/10.35188/UNU-WIDER/2018/604-3. DOI: https://doi.org/10.35188/UNU-WIDER/2018/604-3
World Bank, Overcoming Poverty and Inequality in South Africa. An Assessment of Drivers, Constraints and Opportunities, Washington, DC 2018.
World Bank, South Africa: Social Assistance Programs and System Review, Washington, DC 2021.
Wu J.-Y., Hsu Ch.-Ch., Foreign Direct Investment and Income Inequality: Does the Relationship Vary with Absorptive Capacity?, „Economic Modelling” 2012, vol. 29, nr 6, https://doi.org/10.1016/j.econmod.2012.06.013. DOI: https://doi.org/10.1016/j.econmod.2012.06.013
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
