Abstract
Capital inflow is an important factor for a country’s economy. In this paper our main purpose is to investigate or to assess if the capital from abroad has a significant impact on economic growth in Niger. Our analysis takes data from 1980 to 2012 into consideration by using system equation method or the concept of cointegration and the vector error correction Model of GDP Growth Rate (GDPGR), Development Assistance (DASSIS), Foreign Direct Investment (FDI), Migrants’ Remittance (MIGREMIT), Real Exchange Rate (REEXR) and Domestic Investment (DOMINV). We pay a particular attention on the impact of Development Assistance, Foreign Direct Investment, and Migrants’ Remittance. The result of analysis shows an insignificant impact of Development Assistance (DASSIS), Foreign Direct Investment (FDI), on the growth in contrast with our expectation. Migrants’ Remittance on his side has a significant relation on GDP performance.
Highlights
Nowadays one of the focuses of international community is the development of poor countries
We begin by specifying a production function in which includes time series data of macroeconomic variables of foreign capital flow in the country defined by the composition of Development Assistance (DASSIS) received from outside or financial institutions like IMF or bring by World Bank, European Union and other, the private capital flow which is defined by the Foreign Direct Investment (FDI) inward in the country from all over the world and the Migrants Remittance (MIGREMIT)
The long run relationship between the GDP Growth (GDPGR) and the target variables tells us that Development Assistance and FDI have insignificant relation with growth, but different observation is done for Migrant Remittance
Summary
Nowadays one of the focuses of international community is the development of poor countries. The flow of capital from foreign countries is an important source of growth in developing countries despite the fact that economists do not consider much the analysis of combined effects of DA (Development Assistance), Migrant Remittance and FDI together on economic growth. The manner that these financial sources influences economic growth or development has been an interesting point of research for international economists. Statistical studies have produced widely differing assessments of the correlation between Development Assistance, FDI, Migrant Remittance and economic growth, and no firm consensus has emerged to suggest that foreign source of capital generally does boost growth in developing countries. The fourth part provides conclusions and recommendations related to the results
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
