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Impact of External Capital on Economic Growth in EMCCA Countries

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  • Thierry Mamadou Asngar
  • Médard Mengue Bidzo

Abstract

Taking into account the effects of financial liberalization on activity, associated with the spread of financial crises in an environment of uncertainty and dependence of the economies on external financing, updates the question of the impact of external capital on growth economic. The purpose of this paper is to examine the impact of external capital on economic growth in developing country members of a monetary union. Following a dynamic least squares estimation on the data of the countries of the Economic and Monetary Community of Central Africa (EMCCA), we obtain that an increase in direct investment abroad positively influences the economic growth in these countries.

Suggested Citation

  • Thierry Mamadou Asngar & Médard Mengue Bidzo, 2019. "Impact of External Capital on Economic Growth in EMCCA Countries," International Business Research, Canadian Center of Science and Education, vol. 12(6), pages 90-98, June.
    • Handle: RePEc:ibn:ibrjnl:v:12:y:2019:i:6:p:90-98
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    References listed on IDEAS

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    More about this item

    Keywords

    external capital; economic growth; dynamic least squares; EMCCA;
    All these keywords.

    JEL classification:

    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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