scholarly journals Volatility Spillovers from the International Capital Inflows to Economic Growth in Turkey

2013 ◽  
Author(s):  
Arif Orcun Soylemez ◽  
Server Demirci
Keyword(s):  
Economic Growth ◽  
Capital Inflows ◽  
International Capital ◽  
Volatility Spillovers

scholarly journals Volatılıty Spıllovers from The Internatıonal Capıtal Inflows to Economıc Growth in Turkey

2017 ◽  
Vol 1 (1) ◽  
pp. 18 ◽  
Author(s):  
Arif Orçun Söylemez
Keyword(s):  
Economic Growth ◽  
Positive Relationship ◽  
Financial Liberalization ◽  
Mean Value ◽  
Capital Inflows ◽  
International Capital ◽  
Conditional Correlation ◽  
Conditional Mean ◽  
Volatility Spillovers ◽  
The Mean

This paper empirically investigates the volatility interactions between the international capital inflows to Turkey and Turkish economic growth using the post-financial-liberalization era data. With an Extended Constant Conditional Correlation GARCH model, it is shown that there are volatility spillovers from the capital inflows to growth in Turkey. Some earlier studies in literature have already established a positive relationship between the capital inflows and economic growth in Turkey. According to their results, as the mean value of capital inflows to Turkey increases, so does the conditional mean value of Turkish economic growth. This study is important for it shows that as the volatility of capital inflows to Turkey increases, so does the volatility of Turkish economic growth.   

scholarly journals The Impact of International Capital Flows on Jordan’s Economic Growth

2019 ◽  
pp. 214-220
Author(s):  
Basem M. Lozi ◽  
Mamoun Shakatreh
Keyword(s):  
Economic Growth ◽  
Capital Flows ◽  
Time Series Data ◽  
Developed Countries ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Series Data ◽  
International Capital ◽  
The Government ◽  
The Impact

The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.

scholarly journals Effect of International Capital Inflows on Economic Growth of Nigeria

2019 ◽  
pp. 13-25
Author(s):  
Okoro, C. O. ◽  
Nzotta, S. N. ◽  
Alajekwu, U. B.
Keyword(s):  
Economic Growth ◽  
Development Assistance ◽  
External Debt ◽  
Official Development Assistance ◽  
Least Square ◽  
Capital Inflows ◽  
International Capital ◽  
Explanatory Variables ◽  
Positive Effects ◽  
Long Run

The study examined the effect of international capital inflows on economic growth of Nigeria for the periods, 1986 to 2016. The study employed four core channels of international capital inflows which includes foreign direct investment (FDI), official development assistance (ODA), personal remittances (REM), and external debt stock (EXTDS) into Nigeria as the explanatory variables and GDP growth rate as the dependent variable. The model of the study was hinged on the Harrod-Domar growth model and employed Johansen co-integration and Ordinary Least Square (OLS) techniques for data analyses. The result showed that international capital inflows have long run effect on economic growth of Nigeria. Specifically, the OLS revealed that FDI and REM had significant positive effects on economic growth. However, EXTDS and ODA had no significant effects on economic growth. The study further showed that international capital is a powerful tool for boosting economic growth of Nigeria(R-square = 71%). The recommendations among others include that policy makers should forthwith discourage the use of external debt and official development assistance in Nigeria.

scholarly journals International capital flows in club of convergence

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ly Dai Hung ◽  
Hoan Nguyen Thi Thuy
Keyword(s):  
Economic Growth ◽  
Theoretical Model ◽  
Empirical Analysis ◽  
Capital Flows ◽  
International Capital Flows ◽  
Capital Inflows ◽  
International Capital ◽  
Content Type ◽  
The Empirical Analysis

PurposeThe paper analyzes the pattern of international capital flows, accounting for the convergence on economic growth.Design/methodology/approachThe paper employs an empirical analysis combined with a theoretical model. The evidence is based on a cross-section regression over a sample of 172 economies. And the model is an open multi-country overlapping generation (OLG) economy.FindingsThe empirical evidence records that the pattern of international capital flows in the club of convergence can diverge from the pattern in the club of unconvergence. A higher productivity growth rate is associated with more net capital inflows in the club of convergence but less net capital inflows in the club of unconvergence. The theory shows that proximity to world technology frontier can explain the divergence of capital flows.Research limitations/implicationsThe result can account for controversies between theories on the cross-border capital flows: allocation puzzle, up-hill capital flows and neoclassical growth model.Originality/valueThe paper combines both the empirical analysis with the theoretical model construction to account for the role of convergence of economic growth on determining the pattern of international capital flows.

Capital Inflows and Economic Growth in Nigeria: The Role of Macroeconomic Policies

2016 ◽  
Vol 28 (3) ◽  
pp. 277-290 ◽  
Author(s):  
Philip Ifeakachukwu Nwosa ◽  
Temidayo Oladiran Akinbobola
Keyword(s):  
Economic Growth ◽  
Capital Inflows ◽  
Macroeconomic Policies

South African Economy: No Easy Life Ahead

2015 ◽  
pp. 104-116
Author(s):  
P. Mozias
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Interest Rates ◽  
South African ◽  
Trade Unions ◽  
Current Account Deficit ◽  
National Development ◽  
Capital Inflows ◽  
The Other ◽  
The One

South African rand depreciated in 2013–2014 under the influence of a number of factors. Internationally, its weakness was associated with the capital outflow from all emerging markets as a result of QE’s tapering in the US. Domestically, rand plummeted because of the deterioration of the macroeconomic stance of South Africa itself: economic growth stalled and current account deficit widened again. Consumer spending was restrained with the high household indebtedness, investment climate worsened with the wave of bloody strikes, and net export was still prone to J-curve effect despite the degree of the devaluation happened. But, in its turn, those problems are a mere reflection of the deep institutional misbalances inherent to the very model of the national economy. Saving rate is too low in South Africa. This leads not only to an insufficient investment, but also to trade deficits and overdependence on speculative capital inflows. Extremely high unemployment means that the country’s economic potential is substantially underutilized. Joblessness is generated, first and foremost, by the dualistic structure of the national entrepreneurship. Basic wages are being formed by way of a bargaining between big public and semi state companies, on the one hand, and trade unions associated with the ruling party, on the other. Such a system is biased towards protection of vested interests of those who earn money in capital-intensive industries. At the same time, these rates of wages are prohibitively high for a small business; so far private companies tend to avoid job creation. A new impulse to economic development is likely to emerge only through the government’s efforts to mitigate disproportions and to pursue an active industrial policy. National Development Plan adopted in 2012 is a practical step in that direction. But the growth of public investment is constrained by a necessity of fiscal austerity; as a result, the budget deficit remained too large in recent years. South African Reserve Bank will have to choose between a stimulation of economic growth with low interest rates, on the one hand, and a support of rand by tightening of monetary policy, on the other. This dilemma will greatly influence prices of securities and yields at South African financial markets.

Environmental impact of economic growth, emission and FDI: systematic review of reviews

2019 ◽  
Vol 11 (1) ◽  
pp. 81-134 ◽  
Author(s):  
Neha Saini ◽  
Monica Sighania
Keyword(s):  
Economic Growth ◽  
Carbon Emission ◽  
Capital Inflows ◽  
Kuznets Curve ◽  
Negative Effects ◽  
Research Papers ◽  
Content Type ◽  
The Status ◽  
Review Of Reviews ◽  
Foreign Capital Inflows

PurposeThe purpose of this paper is to organize the detailed review of economic growth, carbon emission and foreign capital inflows and its impact on the environment. Another objective of the study is to provide the comprehensive bibliography and to analyze the findings and results of the studies undertaken in review.Design/methodology/approachThis paper examined 111 research papers from a sample of thousands of papers, based on inclusion criteria, in this area of research. These 111 research papers are categorized on the basis of several factors to know the status of research on this topic.FindingsThis study is based on economic development and carbon emission and its impact on the environment. We tried to gather all the available facts based on this topic and found that the topic is gaining high relevance in the present scenario because of the growing pace of development in developing countries. Most of the studies supported the environmental Kuznets curve hypothesis and we also found that significant amount of literature is available which supports cleaner FDI as a measure to mitigate the negative effects of economic growth on the ecological environment.Originality/valueBased on the literature review from various sources, this study provides the collection, classification and comprehensive bibliography on this topic, which may be helpful for stakeholders such as academicians, researchers and policymakers working particularly in this area of research.

The impact of foreign capital inflows on economic growth and employment in Egypt

2019 ◽  
Vol 36 (3) ◽  
pp. 258-276
Author(s):  
Hanan AbdelKhalik Abouelfarag ◽  
Mohamed Sayed Abed
Keyword(s):  
Economic Growth ◽  
Time Series ◽  
Foreign Investment ◽  
External Debt ◽  
Capital Inflows ◽  
Aggregate Model ◽  
Employment Level ◽  
Content Type ◽  
Foreign Capital Inflows ◽  
The Impact

Purpose The purpose of this paper is to trace the effects of both foreign direct investment (FDI) and external debt on economic growth and employment in Egypt over the 1985–2014 period. Design/methodology/approach The empirical analysis includes three stages: an aggregate time series analysis, a panel model that includes six economic sectors and a set of single-sector models. The “autoregressive distributed lag” approach is utilized either in the time series or in the panel models. Findings The empirical results of this research reveal that foreign investment exerts a weak positive effect on economic growth and employment in Egypt. External debt exerts an insignificant effect on economic growth and employment in the aggregate model. The sectoral analysis reveals that the effect varies greatly between sectors; the effect of FDI on output is positive in the financial, tourism and other service sectors, while it is insignificant in the agricultural, construction and manufacturing sectors. Practical implications It is important not to depend on external debt as an easy way to obtain capital. Greater efforts should be exerted to increase the absorptive capacity of the Egyptian economy so as to benefit from the positive spillover effect of foreign investment as much as possible. Originality/value With respect to Egypt, very limited studies have focussed on the role of external debt on growth and that of FDI and external debt on the employment level. There is no general agreement concerning the effect of FDI on economic growth. Therefore, this research explores the effect of FDI and external debt on the Egyptian economy utilizing both aggregate and sectoral data.

scholarly journals Economic growth effect of private capital inflows: a structural VAR approach for Nigeria

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Friday Osemenshan Anetor
Keyword(s):  
Economic Growth ◽  
Forecast Error ◽  
Research Result ◽  
Structural Var ◽  
Capital Inflows ◽  
Growth Effect ◽  
Private Capital ◽  
Portfolio Investment ◽  
Content Type ◽  
The Government

Purpose The purpose of this paper is to examine the effect of shocks in the various components of private capital inflows on economic growth in Nigeria using quarterly data in the period 1986Q1–2016Q4. Design/methodology/approach The study employs the impulse response function and the forecast error variance decomposition of the structural vector autoregression (SVAR) model. Findings The research result shows that shocks in foreign direct investment (FDI) inflows and portfolio investment inflows have a positive and significant impact on economic growth in Nigeria. In addition, FDIs accounted for significant variation in the growth of the Nigerian economy followed by portfolio investments, while personal remittances exerted the least variation in growth. Practical implications The government should promote a favorable macroeconomic environment for existing and potential foreign investors to ensure the continued inflows of FDI and portfolio investment. Originality/value The novelty of this study lies in disaggregating private capital inflows and analyzing the effect of the shock of each component on the growth of the Nigerian economy using SVAR.

International Capital Markets and American Economic Growth.

1995 ◽  
Vol 48 (4) ◽  
pp. 843
Author(s):  
Richard Sylla ◽  
Lance E. Davis ◽  
Robert J. Cull
Keyword(s):  
Economic Growth ◽  
Capital Markets ◽  
International Capital ◽  
International Capital Markets
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