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This study examines the short-run and long-run impacts of foreign aid and remittances on economic growth in a panel of 31 African countries from 1980 to 2019 utilizing the ARDL Pool Mean Group (PMG) estimation technique. The PMG is utilized based on the outcome of the Hausman test which justifies it appropriateness. There is long-run association among the regressors and the regressand in the model. Our results indicate that, in the short-run, remittance and foreign aid respectively have a negative impact on economic growth but that impact is statistically insignificant. In the long-run, however, remittances have a positive and significant impact on economic growth while foreign aid has a positive but insignificant effect on economic growth on the continent. These results have substantial policy implications. African governments should adopt effective policies to maximize the usefulness and effectiveness of foreign capital, such as foreign aid and remittances, in boosting economic growth. [ABSTRACT FROM AUTHOR]

This study examines the important manifestations of economic globalization, such as increased international trade, inward foreign direct investment (FDI), and air passenger transport (PAX) on economic growth and environmental quality in Southeast Asian countries. The results of data analysis for the period 1990–2019 using the panel autoregressive distributed lag model (ARDL) have confirmed the long run impact of these factors on economic growth and environmental quality (the reduction of CO2 emissions into the environment per unit of production) in Southeast Asia. Furthermore, international trade and PAX positively affect economic growth in both groups of lower-middle-income countries and upper-middle and high-income countries. Inward FDI, however, only has a positive effect on economic growth for the group of lower-middle-income in the short run. In the long run, it has a negative impact. On the other hand, when the manifestations of economic globalization increase, they lead to an increase in CO2 emissions, but there is a decrease in this ratio per unit of production in the long run and in most countries in the short run. These findings are the basis for making economic growth and environmental quality improvements in different regions and countries of Southeast Asia. [ABSTRACT FROM AUTHOR]

For the purpose of this paper, we examine the association between foreign direct investment, openness to trade, infrastructure, innovation, and economic development in 10 members of the Commonwealth Independent States between 2000 and 2020 using a panel Autoregressive Distributed Lag model. According to the results, none of the elements that are researched for this paper has a statistically significant influence on economic growth over the short term. On the other hand, in the long run, each of the variables, including foreign direct investment, infrastructure, innovation, and trade openness, has a statistically favorable and substantial impact on economic growth; furthermore, the findings are in line with the findings of the baseline static panel data models. [ABSTRACT FROM AUTHOR]

The main objective of this study is to empirically investigate the impact of foreign direct investment on economic growth of Ethiopia by using a time series data for the period 1992–2019. Other explanatory variables like trade openness, human capital, national saving and gross capital formation were incorporated in the model. For the purpose of undertaking the study, Autoregressive Distributed Lag (ARDL) econometric model was employed. Moreover, a Toda-Yamamoto Causality test was performed to identify the direction of the causality between economic growth and foreign direct investment. Findings from the study show that, both in the short run and long run, foreign direct investment has a positive and significant impact on economic growth. As an outcome of Toda-Yamamoto Causality test shows, there is a unidirectional causality running from economic growth to foreign direct investment. On the basis of the findings, recommendations are made for the government authorities to expand infrastructural facilities for enabling a free movement of the investors to the remote and marginalized areas to further expand investment activities that result in higher economic growth. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of mining foreign direct investment on economic growth in Ghana using quarterly time series data from 1996–2015. The study employs the Autoregressive Distributed Lag bounds testing approach to cointegration and the error correction model to investigate the existence of a long-run and short-run equilibrium relationship between foreign direct investment into the mining sector and economic growth. The study established that foreign direct investment into the mining sector hurts economic growth in Ghana in the long run but a positive in the short run. The study also finds that private sector credit, capital stock, government spending, and labour participation rate have a statistically significant positive relationship with economic growth in the long run. Trade openness exhibited a statistically significant negative long-run relationship with economic growth, while inflation had a positive but insignificant impact on economic growth for the study period. The study recommends that government should encourage research and development in the mining sector and align mining and other environmental policies to ensure sustainable growth. It is further recommended that government tactfully provide investment incentives to ensure the development of other sectors to avoid the Dutch disease. [ABSTRACT FROM AUTHOR]

International remittances remained one major source of international financial resources in the world. Yet very limited empirical studies exist on the impact of these remittances on economic growth, more especially in Ghana. To bridge this void in literature, the study analyzes the impact of remittances on GDP growth in Ghana from 1990 to 2020. The ARDL estimation technique was used to test the long-run association between the selected variables. The results showed that GDP growth rate has a long-run relationship with remittance inflows, foreign direct investment, unemployment rate, inflation, trade, population growth rate and official development assistance. Lastly, the mediating effect of unemployment on remittance inflows negatively affects GDP growth rate in both runs. It is therefore recommended that to ensure sustained GDP growth rate in Ghana, government should consider tapping into the contribution of remittances by ensuring reliable transfer means and cutting down the cost of transfer. [ABSTRACT FROM AUTHOR]

By using spatial econometric models, this paper studies the impact of foreign direct investment (FDI) inflows and regional spatial factors on economic growth of 63 provinces in Vietnam over the period 2007–2018. Results show that, after controlling for the important factors of the growth model (human capital, physical capital, and institutional quality), FDI inflows have a rather limited direct and indirect impact in boosting economic growth of localities in Vietnam. Results from the estimation of spatial variables show three especially interesting key points: i) there is a close relationship in economic growth and economic shocks among neighbouring provinces; ii) capitals from state sector and domestic non-state sector of neighbouring provinces have a positive impact on economic growth in the host province; and iii) surprisingly, there is a trend of competition among neighbouring localities in attracting not only high-quality human resources but also in terms of untrained human resources. [ABSTRACT FROM AUTHOR]

South-East European countries rely heavily on remittances and FDI as external sources of financing. Hence, an investigation of the behaviour of remittances and FDI during the business cycle and their impact on economic growth is of crucial importance. To achieve this objective, we first analyse the cyclical nature of remittances and FDI flows in Albania, Bosnia and Herzegovina, Croatia, Montenegro, the Republic of North Macedonia, and Serbia (SEE6) during their business cycles in the 2008q1-2021q2 period. Second, we investigate the causal link among these variables, and find out that although at the aggregate level remittances and FDI move synchronously and in the same direction as the business cycle, there are considerable variations across countries. Following Dumitrescu-Hurlin Panel Granger causality test, we find that for most SEE6 there is a bidirectional causal relationship between remittances and economic growth, i.e. economic growth is caused by remittances, and GDP growth also stimulates remittances. [ABSTRACT FROM AUTHOR]

This study aims to identify the factors that influence economic growth for 16 countries located in Central and Eastern Europe, from 1995–2019. To obtain the research results, panel data analysis was used, based on econometric models that test the influence of human capital, foreign capital, and domestic capital on economic growth. The analytical data were collected from international databases (i.e.,the World Bank, IMF, and OECD) for the countries included in the study, considering the analyzed period. The main results show that economic growth is not influenced by the inflows of foreign capital, but by domestic investment and trade openness. [ABSTRACT FROM AUTHOR]

This paper analyzes the contribution of foreign direct investment (FDI) to economic growth in Côte d'Ivoire, for the period 1980–2019. We use the World Development Indicators (World Bank) database. The Autoregressive Distributed Lag (ARDL) cointegration approach results show that, in the short and long-run, FDI negatively impacts economic growth in Côte d'Ivoire. We conjecture that these results are due to the predominance of extractive FDI in Côte d'Ivoire. Indeed, the extractive sector is weakly linked to the national economy and is subject to practices of fraud and corruption. Our results also show the importance of education (human capital) in the country's economic growth. All of these findings suggest the need for selective FDI attraction policies, the integration of the enclave extractive sector into the national economy and the strengthening of the education system for a more efficient human capital capable of absorbing and using new knowledge and high technologies transferred by FDI. [ABSTRACT FROM AUTHOR]

Continuous improvement of the business environment is important for countries seeking to benefit from increased trade and investment through regional integration. Creating an enabling environment for businesses to thrive and expand has become a new concept in international development organizations, and a good business climate allows good ideas to take root, which leads to the creation of jobs and better lives for host countries. The main objective of this study was to investigate the impact of business regulations on FDI inflow and economic growth in East Africa region using data collected from the World Bank spanning from 2010–2019. The study finds that dealing with construction, enforcing contracts, getting credit, getting electricity, paying tax and protecting minority investors have a significant impact on FDI inflow in the region. While enforcing contracts, getting credit, protecting minority investors, resolving insolvency, starting a business and trade across borders have a significant impact on economic growth in the region. Moreover, each additional reform during 2010–2019 is associated, on average, with a 3.09% increase in FDI inflows and 2.24% increase in GDP in East African countries. The findings of this study will help policy makers in the region to establish a strong legal framework of business regulations to attract FDI inflow into their economies, to adjust their ease of doing business procedures to attract FDI to their economies and to promote regional economic growth. This will also assist investors in monitoring these key indicators to facilitate investment decisions in foreign countries. [ABSTRACT FROM AUTHOR]

The study examines the relationship between private capital inflows (foreign direct investment and remittances), institutions and economic growth in a panel of 45 African countries from 2002 to 2018. Using the system generalized method of moments (SGMM), the study found that foreign direct investment inflows (FDI) have a significant and positive impact on economic growth in Africa. However, remittances exert no significant impact on economic growth. The study further analyzed the moderating role of institutions in the relationship between private capital inflows and economic growth by examining the impact of the interactions between private capital inflows and institutions on economic growth. The study concluded that the coefficient(s) of the interplay between FDI and institutional variables is negative and statistically significant presupposing that institutions in Africa do not complement FDI inflows in driving economic growth. In the same vein, the coefficient of the interactive variables between remittances and institutions (regulatory requirement) is negative and significant indicating that remittances and institutions are substitutes rather than complements. The implication of the study, therefore, lies in the fact that institutions in Africa are weak and as a result cannot play a supportive role in reaping the positive spillovers of private capital flows to Africa. [ABSTRACT FROM AUTHOR]

This study examines the impact of economic growth along with taxes, technology, trade openness and exchange rate on the sustainability of foreign private investment (FPI) in Pakistan. This study uses random effects and generalized least squares estimators and contains data set starting from 1996 to 2017. The results indicate that the Pakistan economy has vastly positive influenced regarding the location and choice of emerging and developed countries' investment in the domestic market. Furthermore, emerging and developed economies investment increases the contribution among domestic firms to the national economy. The results, which are consistent across models, indicate that Pakistan's economy is more likely to receive FPI from emerging and developed economies, but the relative intensity of local government efforts, regardless of economic size. Moreover, an increase in likelihood will generate FPI from developed countries. [ABSTRACT FROM AUTHOR]

The main goal of this paper is to assess the effect of remittances on economic growth and poverty reduction amongst the post-Soviet states, compared with other external sources of capital, such as foreign aid and foreign direct investment. In this paper we use a panel data set on economic growth and poverty estimates (poverty headcount, poverty gap and poverty severity) in 10 selected former post-Soviet republics i.e. Commonwealth of Independent States (CIS). We found that, on average, a 1% increase in remittance flows provokes around a 0.25% rise in per capita GDP and a 2% decline in poverty severity. Remittances seem to have produced a significant reduction on poverty through increasing income and smoothing consumption levels. [ABSTRACT FROM AUTHOR]