Foreign Capital Inflows, Financial Development and Growth In Nigeria: A Structural VAR Approach

2020 ◽  
Vol 54 (3) ◽  
Author(s):  
Friday Osemenshan Anetor
Keyword(s):  
Financial Development ◽  
Foreign Capital ◽  
Structural Var ◽  
Capital Inflows ◽  
Foreign Capital Inflows

Foreign capital inflows and economic growth: the experience of low-income countries in Sub Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Atif Awad
Keyword(s):  
Low Income ◽  
Foreign Capital ◽  
Ordinary Least Squares ◽  
Capital Inflows ◽  
Sub Saharan Africa ◽  
Low Income Countries ◽  
Content Type ◽  
Long Run ◽  
Foreign Capital Inflows ◽  
The Impact

Purpose This paper aims to investigate the long-run impact of selected foreign capital inflows, including aid, remittances, foreign direct investment (FDI), trade and debt, on the economic growth of 21 low-income countries in the Sub Saharan Africa (SSA) region, during the period 1990–2018. Design/methodology/approach To obtain this objective and for robust analysis, a parametric approach, which was dynamic ordinary least squares, and a non-parametric technique, which was fully modified ordinary least squares, were used. Findings The results of both models confirmed that, in the long run, trade and aid affected the growth rate of the per capita income in these countries in a positive way. However, external debt seemed to have an adverse influence on such growth. Originality/value First, this is the initial study that has addressed this matter across a homogenous group of countries in the SSA region. Second, while most of the previous studies regarding capital inflows into the SSA region have focused on the impact of only one or two aspects of such foreign capital inflows on growth, the present study, instead, examined the impact of five types of foreign capital inflows (aid, remittances, FDI, trade and debt).

scholarly journals Foreign Capital Inflows and Growth of Employment In India: An Empirical Evidence from Public and Private Sector

2016 ◽  
Vol 8 (2) ◽  
pp. 189
Author(s):  
Narender Khatodia ◽  
Raj S. Dhankar
Keyword(s):  
Foreign Direct Investment ◽  
Private Sector ◽  
Direct Investment ◽  
Foreign Capital ◽  
Positive Impact ◽  
Capital Inflows ◽  
Public And Private ◽  
Indian Economy ◽  
Foreign Capital Inflows ◽  
Public And Private Sector

The role of foreign capital in economic growth has been a burning topic of debate in countries world over including India. It is not possible for a developing country like India to grow without sufficient foreign capital inflow, technology and employment generation. The Indian government has taken many initiatives to attract foreign investment to boost the Indian economy since the liberalization process started in 1991. As a result, India has received Foreign Direct Investment (FDI) to the tune of US $ 380215 million by the end of June 2015. This study has assessed the growth of employment in public and private sector by the flow of foreign capital, comprising of Foreign Direct Investment, Foreign Portfolio Investment (FPI), External Commercial Borrowings (ECBs), and NRI Deposits in India during the period 1991 to 2012. The study has also analyzed the trends of employment in public and private sectors of Indian economy. We find that overall foreign capital inflows, except for the FPI and NRI deposits, have a significant positive impact on the growth of private sector employment.

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

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