Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Impact of Foreign Capital Inflow to the growth of the economies of Sub-Saharan Africa

Idris Isyaku Abdullahi (Ph.D) & Murtala Garba and Isah Magaji

Abstract

This study provided an empirical analysis on the impact of foreign capital inflow to the growth of sub-saharan African countries for the period 2010-2015 using difference GMM. It was found that Foreign capital inflow adversely affects the growth of the sub-saharan Africa economies.The implication is that sub-Saharan African countries are not adequately accessing the foreign capital which mostly come inform of FDI resulting from insecurity as well as non- conducive business climate prevailing in the region, as a result of which the foreign capital inflow negatively affects their level of economic development instead of enhancing it. Keyword: Economic growth, GMM, FDI

References

Abramowitz, Moses. 1986. “Catching Up, Forging Ahead, and Falling Behind.” Journal of Economic History 56(2): 385–406. Attanasio, O., Picci, L., & Scorn, A. (2000). Saving, growth and investment: A macroeconomic analysis using a panel of countries. The Review of Economics and Statistics, 82(2), 182– 211. Baharumshah, A. Z., &Thanoon, M. A. M. (2006). Foreign capital flows and economic growth in East Asian countries. China economic review, 17(1), 70-83. Barro, R.J., 1991. Economic growth in a cross section of countries. Q. J. Econ. 106, 407–443. Campbell, J. (1987). Does savings anticipate declining labour income? An alternative test of the permanent income hypothesis. Econometrica, 55, 1249– 1273. Caselli, F., Esquivel, G., Lefort, F., 1996. Reopening the convergence debate: a new look at Cross-country growth empirics. J. Econ. Growth 1, 363–389. Cohen, D. (1993). Low investment and large LDC in the 1980s. American Economic Review, 83(2), 437–449. Grossman, G., &Helpman, E. (1991). Innovation and growth in the global economy. Cambridge7 IMT Press. Idris I.A and Zaleha M.N 2015The Impact of Economic Growth on Child Labour in Developing Countries. Journal of Economics and Sustainable Development, 6(12), 206-212. Islam, N., 1995. Growth empirics: a panel data approach. Q. J. Econ. 110, 1127–1170. Levin, R., &Raut, L. (1997). Complementarities between exports and human capital in economic growth: Evidence fromsemi-industrialized countries. Economic Development and Cultural Change, 46(1), 155– 174. Mankiw, G., Romer, D.,Weil, N., 1992. A contribution to the empirics of economic growth. Q. J. Econ. 107, 407–437. Reinhart, C., &Talvi, E. (1998). Capital flows and saving in Latin America and Asia: A reinterpretation. Journal ofDevelopment Economics, 57, 45– 66. Rodrik, D. (2000). Savings transitions. The World Bank Economic Review, 14, 481–507. Siddiqui, D.A., Ahmed, Q.M., 2013. The effect of institutions on economic growth: a global Analysis based on GMM dynamic panel estimation. Struct. Chang. Econ. Dyn. 24, 18–33.

More Articles from INTERNATIONAL JOURNAL OF ECONOMICS AND FINANCIAL MANAGEMENT

Bridging Legal, Financial, and Data Governance in Enterprise AI: Emerging Trends

Author: Funmilayo Ashore-Onisemo, Ebehiremen Faith Iziduh, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa

Macroeconomic Policies and Economic Stability in Nigeria

Author: Abel-Tariah Emmanuel Onate, Okon, Ekanem Nsikhe, Nwenyi Francis Onwe

Determinants of Bank Liquidity in Nigeria

Author: Nelson Johnny Ebifemo-ere Stephen