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IJARBM: Volume 6, Issue 1

Exploring the Determinants of Capital Flows in Emerging Markets: Evidence from South Africa

This paper is part of the International Journal of Applied Research in Business and Management (ISSN: 2700-8983), Volume 6, Issue 1, published in 2025.

Authors

Jethro Godi

Abstract

Examining the determinants of capital flow in emerging markets stakeholders can gain insights into the drivers behind capital movements and better assess the opportunities and risks associated with cross-border investments. The purpose of this study is to examine the fundamental determinants of capital flow in emerging markets. This study utilised a quantitative research methodology, specifically employing a survey method and online questionnaires to gather data from asset managers in South Africa. Data analysis involved the utilisation of descriptive statistics. The findings indicated country conditions, vulnerability indicators, trade openness, government finance indicators, liquidity variables, and market size as the main determinants of capital flow in emerging markets like South Africa. This study enhanced the existing knowledge and offered fresh perspectives on the determinants of capital flow in emerging markets that motivate investors to contemplate investing in emerging markets. Hence, it is advisable for continued vigilance and analysis of these determinants will be essential for stakeholders to adapt to evolving market conditions and make informed decisions in an increasingly interconnected and dynamic global economy.

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Suggested Citation (APA 7th)

Godi, J. (2025). Exploring the Determinants of Capital Flows in Emerging Markets: Evidence from South Africa . International Journal of Applied Research in Business and Management, 6(1). https://doi.org/10.51137/wrp.ijarbm.2025.jgee.45785

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