TITLE:
Foreign Capital Flow in Niger: An Assessment of Impact Using System Equation Method
AUTHORS:
Amadou Maiga Ousseini, Xiaojuan Hu, Badamassi Aboubacar
KEYWORDS:
GDP Growth, Foreign Capital Flow, Time Series, System Equation, Niger
JOURNAL NAME:
Theoretical Economics Letters,
Vol.5 No.4,
August
5,
2015
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.