Foreign Capital Inflows and Economic Growth in North African Countries: the Role of Human Capital

2021 ◽  
Author(s):  
Imen Mohamed Sghaier
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Capital ◽  
Capital Inflows ◽  
North African ◽  
African Countries ◽  
Foreign Capital Inflows ◽  
North African Countries

scholarly journals Foreign Financial Flows, Human Capital and Economic Growth in North African Countries

2021 ◽  
Vol 27 (3) ◽  
pp. 355-371
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
North African ◽  
African Countries ◽  
Financial Flows ◽  
The North ◽  
Absorptive Capacities ◽  
North African Countries ◽  
The Relationship

The purpose of this study is to analyze the relationship between foreign financial flows (i.e., FDI inflows and remittances), human capital, and its effects on economic growth in 4 North African countries. Annual panel data from 2000 to 2018 are examined using the system GMM. First, we found strong evidence of a positive link between FDI and economic growth. Moreover, the results indicate that the complementarity between FDI and human capital positively influences economic growth. Second, the remittances are found to be positive factors for economic growth. In fact, higher human capital accumulation of receiving countries increases these positive impacts. Overall, the results indicate that foreign financial flows are positively correlated with human capital in influencing economic growth in the North African countries. Therefore, it becomes pertinent for policymakers to pursue a human capital policy to improve their absorptive capacities to exploit full benefits of foreign financial flows.

scholarly journals What is the role of Financial Development and Energy Consumption on Economic Growth?

2014 ◽  
Vol 3 (1) ◽  
pp. 137-149
Author(s):  
Doaa Mohamed Salman ◽  
Eyad Atya
Keyword(s):  
Economic Growth ◽  
Energy Consumption ◽  
Financial Development ◽  
North African ◽  
African Countries ◽  
Policy Makers ◽  
Applied Model ◽  
North African Countries ◽  
Relationship Of

This paper aims to test the validity of the causality between financial development and economic growth on energy consumption in three of North African countries. The study employs error coreection model and Granger causaility test to analyza a dataset for three North African countries covering a period from 1980 to 2010. The applied model is based on demand function for energy to assess the existing of causal relationship of energy with financial development, and economic growth, in Algeria, Egypt, and Tunisia. Empirical results provide a positive significant relating financial development and energy consumption in Algeria, and Tunisia. On the other hand, Egypt’s results show a negative significant relationship relating energy consumption and financial development. The paper is valuable to policy makers in North African countries in their pursuit for achieving economic growth as it clarifies the urge for the financial development reforms to stimulate investment and growth.

scholarly journals Types of Foreign Capital Inflows and Economic Growth: New Evidence on Role of Financial Markets

2015 ◽  
Vol 29 (6) ◽  
pp. 768-789 ◽  
Author(s):  
Ahmad Zubaidi Baharumshah ◽  
Ly Slesman ◽  
Evelyn Shyamala Devadason
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Foreign Capital Inflows ◽  
New Evidence

Endogenous specification of foreign capital inflows, human capital development and economic growth

2019 ◽  
Vol 46 (3) ◽  
pp. 454-472 ◽  
Author(s):  
Hammed Oluwaseyi Musibau ◽  
Agboola Hammed Yusuf ◽  
Kafilah Lola Gold
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Group Method ◽  
Human Capital Development ◽  
Content Type ◽  
Foreign Capital Inflows ◽  
Capital Development ◽  
The Relationship

PurposeThe purpose of this paper is to empirically investigate the relationship between foreign capital inflows, human capital development (HCD) and economic growth in ECOWAS countries.Design/methodology/approachIn line with the augmented Solow model, the relationship between foreign capital inflows, human capital development and gross domestic product in the ECOWAS member countries is investigated using the pool mean group method.FindingsThe authors find overwhelming evidence that foreign capital inflows and human development have a significant effect on economic growth in ECOWAS member countries. However, foreign direct investment (FDI), official development assistant, HCD and gross domestic investment are positively related to economic growth in sub-regions economies. Conversely, migrate official remittance, portfolio investments and external debts are negatively related to economic growth.Research limitations/implicationsThe authors recommend that sound economic policies should be targeted in encouraging foreign capital accumulation and HCD, especially on FDI, official development assistance that exerts a positive impact on the economic growth of the sub-region. Therefore, training is required to prepare the labor force to work with new technologies and promote efficient enterprise for ECOWAS economies to compete with developed countries and emerging economies.Social implicationsThis study argued that the development of human capital is a pathway that may lead countries away from sustained growth. In the context of any economy which lack well-developed capital and education markets, many otherwise qualified citizens may be denied the basic skills they need in order to contribute fully to the nation’s economic development. HCD would encourage foreign investments, resulting in reduction in poverty in ECOWAS countries.Originality/valueSeveral studies have been done on foreign capital inflow and economic growth nexus such as Orjiet al.(2014), Ajide and Raheem (2016), Musibauet al.(2017), etc.; however, none of the research studies has actually examined the effect of the relationship between foreign capital inflows and HCD on economic growth in ECOWAS countries. This study is designed to fill the vacuum.

Constructing Impossible Uprisings

2017 ◽  
Author(s):  
Frédéric Volpi
Keyword(s):  
Local Level ◽  
Unintended Consequences ◽  
Political Life ◽  
North African ◽  
African Countries ◽  
Unexpected Events ◽  
Causal Processes ◽  
The Face ◽  
North African Countries

This chapter introduces the ‘eventful sociology’ that characterizes the emergence of protest episodes in the four North African countries. Events are non-routine sequences of actions that reshape the routine forms of governance (and opposition) structuring everyday social and political life. Transformative events initiate a transformation of behaviors that is both strategic and reactive, and that reshapes social and political life first at the local level. This chapter qualifies the emergence of new causal processes and how they interact with preexisting practices of governance. The narrative places side by side the views and strategies of different pro- and anti-regime actors in the face of unexpected events and their consequences. The chapter outlines how sequences of events produced new practices, arenas and actors of contestations, often as unintended consequences of interactions. This event-centric account of protest episodes highlights the transformative role of protest in the construction of newly effective forms of political behaviors.

scholarly journals Financial Liberalization, Economic Growth and Investment Strategy: Lessons from Taiwan for New Industrial Countries

2015 ◽  
Vol 3 (2) ◽  
pp. 188 ◽  
Author(s):  
Yu-Wei Lan ◽  
Dan Lin ◽  
Lu Lin
Keyword(s):  
Economic Growth ◽  
Institutional Investors ◽  
Foreign Capital ◽  
Investment Strategy ◽  
Capital Inflows ◽  
Investment Efficiency ◽  
The Real ◽  
Foreign Capital Inflows ◽  
Foreign Institutional Investors ◽  
The Impact

<p><em>To examine the impact of foreign capital inflows on Taiwan’s economy after internet bubbles of 2000, this study adopts data from the first quarter of 2001 to the second quarter 2015 to test if foreign capital inflows have positive impacts on Taiwan’s economic growth. This study also uses program trading and aims to prove that with financial liberalizations, the investment efficiency of foreign institutional investors is better than domestic institutional investors.</em></p><p><em>The results from the error correction model shows that capital formation, domestic savings and foreign direct investment all have positive relationships with the real economic growth. However, the rate of financing and foreign debt and depreciation all have negative relationships with the real economic growth. The results are all statistically significant. Hence, they do not completely support the hypothesis that foreign capital inflows are beneficial for economic growth.</em></p><p><em>Moreover, this study proves that the futures market in Taiwan is not strong-form market efficient. This result provides support for the hypothesis that the investment efficiency of foreign institutional investors is higher than that of domestic institutional investors. Investors can therefore raise their investment performance by following the investment strategies of foreign institutional investors.</em></p>

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