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Periodical article | Leiden University catalogue | WorldCat |
Title: | Foreign Capital Inflow, Domestic Credit and Private Investment in Swaziland |
Author: | Elhiraika, Adam B. |
Year: | 2001 |
Periodical: | Eastern Africa Social Science Research Review (ISSN 1027-1775) |
Volume: | 17 |
Issue: | 2 |
Period: | June |
Pages: | 69-90 |
Language: | English |
Notes: | biblio. refs., ills. |
Geographic terms: | Swaziland - Eswatini Southern Africa |
Subjects: | investments Economics and Trade Development and Technology international relations Economics, Commerce Private investment Foreign capital Credit policy interest rates investment policy employment |
Abstract: | Historically, private investment in Swaziland relied heavily on foreign resources, which have been rapidly declining in the 1990s. This paper examines the role of the domestic credit and interest rate policy in promoting desired and sustainable investment rates in the country. The analysis takes stock of investment constraints, especially the limited room for independent monetary policy, due to Swaziland's membership of the Common Monetary Agreement (CMA). The paper finds that the flow of domestic bank credit to the private sector has a positive and significant effect on private investment. After highlighting the potential and constraints of the domestic financial system, the paper emphasizes the need for policies to enhance the availability of investment loans as well as non-credit support to domestic enterprises. Bibliogr., notes, ref., sum. |