مقاله انگلیسی رایگان در مورد تاثیر سرمایه خارجی برای رشد اقتصادی – امرالد 2018

Purpose – Nowadays, foreign capital inflow (FCI) is considered as a catalyst for economic development and an important source of transferring technology and foreign exchange earnings from developed to developing countries. The purpose of this paper is to study, first, the impact of different forms of FCIs, namely, foreign direct investment (FDI), personal remittances (PR) and official development assistant (ODA) on economic growth on 26 top African countries; and, second, which of them is more effective on economic growth of the studied countries. The results of this paper are very important for host governments’ policy and help them to design their economic plans to absorb the suitable foreign inflow. Design/methodology/approach – The paper uses Pooled Mean Group (PMG) econometric technique to estimate the heterogeneous panels over the period 1992–2016. Findings – The results of the study show that all three forms of FCIs have positive and significant effects on economic growth in the long and short run. However, the PR had the most effect on economic growth in the long and short run. The study suggests that the governments should design and implement appropriate fiscal, monetary and trade policies in order to create and improve an enabling environment to attract FCIs as a supplementary source of domestic investment. Research limitations/implications – The research limitations of this paper are as follows: data sets of FDI, PR and ODA were available not for all African countries; and, data sets that were available were of before the year 1992. Thus, the research is done for the African countries which had the data sets after the year 1992. Practical implications – The result of this paper indicates the impact of each FDI, PR and ODA in economic growth. So, countries can take more attentions to each of them on economic planning. Social implications – FCIs are one of the important external source of exchange for each country. So, the study of importance of each of them is necessary for economic planning. Originality/value – Most of the previous studies have examined the impact of three different forms of FCIs on economic growth separately, on different countries and regions and using various models and econometric techniques. One of the contributions of this paper is focused on the impacts of FDI, PR and ODA on economic growth separately and simultaneously in 26 top recipient African countries and using the PMG technique which is an advanced econometrical estimation and studied less about it. The other contribution of this research is the comparison of the impact of different FCIs on economic growth, and it is very important for governments’ economic policy.

Introduction

The developing countries can accelerate the speed of economic growth through the transfer of advanced technology and innovations of developed countries through attracting various forms of foreign capital inflows (FCIs). Most of the economists confirm a positive relationship between FCIs and economic growth. Of course, the effect of FCIs varies from one country to the others and also from one group of countries or region to the others; and it depends on the economic environment and governments’ policies (Nwaogu and Ryan, 2015). The different forms of FCIs are foreign direct investment (FDI), personal remittance (PR), official development assistance (ODA) and foreign portfolio investment. Among them, FDI, PR and ODA are the most important sources of FCIs in the most host (or recipient) countries. FDI is an investment in a business by an investor country for which the foreign investor has control over the company purchased. OECD defines “control” as owing 10 percent or more of business. FDI can be a tremendous source of external capital for a developing country, which can lead to economic development. FDI may also provide some great advantages for multinational corporations such as access to foreign markets, access to natural resources and it reduces the cost of factors production (www.oecd.org, 2016). Remittances are mainly in the form sent by non-resident to their household (resident) in the home country. In other words, PR are defined as transfers of a sum of money that follow unidirectional paths from a migrant to his or her sending relations and or friends, community, and country (Majumder and Donghui, 2016). PR are one of the largest sources of external funding for developing countries and three times the size of ODA while supplementing the domestic incomes of millions of poor families across the world. ODA refers to foreign aids, in other words, the flow of financial resources from the central or local government of donor countries and multilateral agencies to developing countries. ODA is intended to promote the economic development and to improve the quality of life in developing countries (www.oecd.org, 2016). Most of the African countries suffer from the low finance sources or old technology to develop their industrial projects, and the domestic savings or native technology is not enough and suitable to implement advanced plans. So, they have to provide the shortage of financial reserves or modern technology from abroad. The African countries have not been more successful to attract FCIs. In the last two decades, for instance, the ratio of investment to GDP in African countries averaged at about 18 percent of GDP which was well below the ratios attained by similar countries of Asia (30–32 percent) and Latin America (20–25 percent) (www.world bank.org, 2016). The African countries also face the difficulties such as severe unemployment, heavy external debts and economic stagnation.