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Potential financing sources of investment and economic growth in North African countries: A causality analysis

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  • Abdelhafidh, Samir
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    Abstract

    This paper investigates the causality interactions between potential financing sources of investment and economic growth in North African countries. For each one of them, trivariate vector autoregressive (VAR) models were estimated. We find that domestic saving follows their economic growth. We also find that the foreign capital-led growth hypothesis was frequently confirmed in Egypt and Algeria, but was observed only for grants in Morocco and Tunisia. These results underscore the merits of a case by case approach and have some policy implications on the more suitable financing sources to enhance economic growth in these countries.

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    File URL: http://www.sciencedirect.com/science/article/pii/S016189381200004X
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 35 (2013)
    Issue (Month): 1 ()
    Pages: 150-169

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    Handle: RePEc:eee:jpolmo:v:35:y:2013:i:1:p:150-169

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    Web page: http://www.elsevier.com/locate/inca/505735

    Related research

    Keywords: Foreign capital; Domestic saving; Economic growth; North African Countries;

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    Cited by:
    1. Ayadi, Rym & Arbak, Emrah & Ben-Naceur, Sami & De Groen, Willem Pieter, 2013. "Financial Development, Bank Efficiency and Economic Growth across the Mediterranean," CEPS Papers 7832, Centre for European Policy Studies.
    2. Cândida Ferreira, 2013. "Bank performance and economic growth: evidence from Granger panel causality estimations," Working Papers Department of Economics 2013/21, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.

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