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The impact of foreign capital inflows, infrastructure and role of institutions on economic growth: an error correction model

Citation

Musibau, HO and Mahmood, S and Hammed, AY, The impact of foreign capital inflows, infrastructure and role of institutions on economic growth: an error correction model, Academic Journal of Economic Studies, 3, (4) pp. 35-49. ISSN 2393-4913 (2017) [Refereed Article]


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Copyright 2017 Academic Journal of Economic Studies

Official URL: https://EconPapers.repec.org/RePEc:khe:scajes:v:3:...

Abstract

This study investigates the impact of foreign capital inflows, corruption, and infrastructure on economic growth among ECOWAS members over the period 1980 to 2016. We adopt the Two-Gap model and using ECM method. The empirical results revealed long run causality between the explanatory variables and growth. And also there are short run causality between FCI, infrastructure and corruption on growth but Political stability does not cause growth in short run. Findings of the study also established a negative relationship between FDI, Infrastructure and real growth while ODA, corruption, political stability have positive impact on real growth among ECOWAS members. We recommend policy across the ECOWAS countries that will attract foreign capital inflow. The policy makers should look inwards, re-strategize and begin to formulate and implement sound and credible economic policies that will be aimed at attracting productive capital inflows into the region

Item Details

Item Type:Refereed Article
Keywords:Foreign capital flows, infrastructure, institutions, economic growth, ECM
Research Division:Economics
Research Group:Applied Economics
Research Field:International Economics and International Finance
Objective Division:Economic Framework
Objective Group:International Trade
Objective Field:International Trade not elsewhere classified
UTAS Author:Musibau, HO (Mr Hammed Musibau)
ID Code:134766
Year Published:2017
Deposited By:Economics and Finance
Deposited On:2019-09-03
Last Modified:2019-10-02
Downloads:3 View Download Statistics

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