The Effects of Capital Flows on Economic Growth in Senegal-Reference-Cited by-同舟云学术

The Effects of Capital Flows on Economic Growth in Senegal

Published:2017-04-04 Issue:2 Volume:11 Page:121-142
ISSN:0973-8010
Container-title:Margin: The Journal of Applied Economic Research
language:en
Short-container-title:Margin: The Journal of Applied Economic Research

Author:

Adams Samuel¹,Klobodu Edem Kwame Mensah²,Lamptey Richmond Odartey³

Affiliation:

1. Samuel Adams is at the Ghana Institute of Management and Public Administration, School of Public Service and Governance, Accra, Ghana,

2. Edem Kwame Mensah Klobodu is at the Ghana Institute of Management and Public Administration, Business School, Accra, Ghana,

3. Richmond Odartey Lamptey is at the Open University Business School, Michael Young Building, Milton Keynes, UK,

Abstract

This article examines the effects of capital flows on economic growth in Senegal using autoregressive distributed lag (ARDL) over the period 1970–2014. Overall, our results show that remittances cause economic growth in Senegal in the long run. In contrast, external debt has a negative impact on economic growth. The ARDL results, however, show no cointegration between aid and growth or between foreign direct investment (FDI) and growth. The Quandt–Andrews breakpoint test selects year 1991 as the most likely breakpoint location for the remittances–growth equation. Finally, time-varying parameter analyses using the year 1991 as a slope dummy reveal that remittances have been growth-enhancing post-1991. Therefore, government and policy makers in Senegal must create a favourable atmosphere for attracting more remittances to promote economic development. JEL: F21, F24, F35, F34, O10

Publisher

SAGE Publications

Subject

General Economics, Econometrics and Finance,Development

Link

http://journals.sagepub.com/doi/pdf/10.1177/0973801016687869

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