The impact of international capital flows on the South Africa economy since the end of apartheid
- South Africa European Union 2011
- 28p.
This paper consider international capital flows into and out of South Africa during the post-apartheid era. It will examine the types of flows that have been entering the country and how they are absorbed into the economy. In addition, it will consider the effects of these capital flows on the economy taking into account the broad range of literature that link financial crises to volatile surges in capital flows. This paper considers recorded capital flows as reported by the South African Reserve Bank. The period examined is from 1990 to 2005. The period includes 1990-3, which is still during the apartheid era but negotiation between the apartheid government and the liberation movement over a new constitution had begun. Economic isolation of South Africa eased from 1990 probably in anticipation of the democratic change. Capital flows to South Africa also started increasing during the early 1990s.
