THE INTERACTION BETWEEN FOREIGN DIRECT INVESTMENT, FOREIGN PORTFOLIO INVESTMENT AND ECONOMIC GROWTH: THE CASE OF SUB- SAHARAN AFRICAN COUNTRIES
Künye
Adem, G. Ö. K., & Güvercin, D. (2020). The interaction between foreign direct investment, foreign portfolio investment and economic growth: the case of Sub-Saharan African countries. Akademik İncelemeler Dergisi, 15(1), 57-82.Özet
There are contradicting arguments in the literature examining the influence of
foreign investment on economic growth in Sub Saharan Africa. Some researchers
claim that high level of volatility, rising current account deficit, lack of developed
financial markets and low quality of regulatory framework would generate
economic losses for developing countries in Sub Saharan Africa when they
liberalized their capital flows. However, some studies focus on growth enhancing
effect of foreign investment to be a remedy for low capacity of accumulated
savings in Sub Saharan Africa. The current study brings new evidence about the
role of foreign portfolio investment and foreign direct investment on economic
growth for countries in Sub Saharan Africa. Due to the endogenenity issue, we
have used panel VAR methodology to estimate three simultaneous equations
system. By analyzing 25 Sub Saharan African countries over the 1990-2016
period, we found that foreign direct investment and foreign portfolio investment
are complements and they have positive significant impacts on economic growth.
Kaynak
Akademik İncelemeler DergisiCilt
15Sayı
1Bağlantı
https://doi.org/10.17550/akademikincelemeler.484712https://hdl.handle.net/20.500.12294/3701