Do foreign financial inflows impact on economic growth? Evidence from sub-Saharan Africa

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43310%2F20%3A43918295" target="_blank" >RIV/62156489:43310/20:43918295 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.25115/eea.v38i2.3293" target="_blank" >http://dx.doi.org/10.25115/eea.v38i2.3293</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.25115/eea.v38i2.3293" target="_blank" >10.25115/eea.v38i2.3293</a>

Result language

angličtina

Original language name

Do foreign financial inflows impact on economic growth? Evidence from sub-Saharan Africa

Original language description

The study examines the impact of financial inflows, proxied by Foreign Direct Investment, Official Development Assistance and remittances on Economics growth in Sub-Saharan Africa using the Generalized Method of Moments technique and panel data for 47 Sub Saharan African countries for the period 1995-2017, while controlling for domestic investment, human capital, government expenditure, trade openness, inflation, financial development, political rights and civil liberty. The results indicate that remittances and Foreign Direct Investment are growth-enhancing as they impact positively on economic growth consistent with Solow neoclassical model. However, Official Development Assistance reduces economic growth possibly as a result of weak institutional quality. While government expenditure, domestic investment and inflation positively impact on Economics growth, trade openness and Secondary School Enrolment had a negative impact on growth. We recommend countries in the sub-region to come up with policies that encourage Foreign Direct Investment and remittances inflow while ensuring that institutional structures are improved to ensure the efficiency of Official Development Assistance and the better allocation of such resources. Countries also need to focus more on internal sources of finance for government expenditure.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50206 - Finance

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2020

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Estudios de Economía Aplicada

ISSN

1133-3197

e-ISSN

—

Volume of the periodical

38

Issue of the periodical within the volume

2

Country of publishing house

ES - SPAIN

Number of pages

16

Pages from-to

15-30

UT code for WoS article

000579819200015

EID of the result in the Scopus database

2-s2.0-85090520833