The impact of multinational corporations on the South African economy

ii According to Saville (1993), the economic growth of less developed countries is impeded due to the presence of four “gaps ” in these economies. However, Saville (1993), states that, by filling these gaps, developing economies are able to achieve economic growth and development. The main objective of this research is to update the study of Saville (1993) in order to determine the impact of the multinational corporation on the host economy in reference to the drivers of exogenous and endogenous growth in contribution to filling these gaps. This is a quantitative study which makes use of secondary data obtained from JSE listed firms operating in the mining sector in South Africa. Statistical regression analysis was conducted and results are compared to the previous Saville (1993) study. In summary, the results of the study are mixed however in terms of informing government policy, this study confirms the importance of FDI in emerging markets