Openness, Investment and Growth in Sub-Saharan Africa
| Autor: | Pedro Trivín, Hector Sala |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Macroeconomics
Aggregate Productivity Economics and Econometrics Conditional convergence Capital Monetary economics Foreign direct investment Development Investment (macroeconomics) Capacity F43 - Economic Growth of Open Economies O47 - Empirical Studies of Economic Growth Crowding out E22 - Investment Intangible Capital Cross-Country Output Convergence O55 - Africa Globalization Economics Openness to experience Economic model Settore SECS-P/01 - Economia Politica Panel data |
| Zdroj: | Journal of African Economies. 23(2):257-289 |
| DOI: | 10.1093/jae/ejt027 |
| Popis: | This paper revisits the determinants of economic growth in Sub-Saharan Africa by looking at conditional and unconditional convergence, and by focusing on the growth incidence of globalisation, domestic investment (DI), and foreign direct investment (FDI). We use annual time-series to estimate dynamic panel data models that exploit all sample information (i.e., we do not only use 5-year averages as is standard in the literature). We find the rate of conditional convergence to be around 4%, and the growth impact of FDI and DI to be greater the greater is the change in the degree of economic openness. We also find a net crowding out effect between both types of capital so that larger amounts of FDI reduce the impact of DI on economic growth (and vice versa). These results are obtained through the estimation of multiplicative interaction models which allows us to evaluate the interactions between changes in openness, DI and the net flows of FDI. This constitutes a novelty in the appraisal of the globalisation and investment impact on economic growth. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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