The Effects of Capital Flows on Economic Growth in Senegal

Samuel Adams; Edem Kwame Mensah Klobodu; Richmond Odartey Lamptey

doi:10.1177/0973801016687869

The Effects of Capital Flows on Economic Growth in Senegal

Samuel Adams, Edem Kwame Mensah Klobodu, Richmond Odartey Lamptey

Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid

10 Dyfyniadau (Scopus)

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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.

Iaith wreiddiol	Saesneg
Tudalennau (o-i)	121-142
Nifer y tudalennau	22
Cyfnodolyn	Margin
Cyfrol	11
Rhif cyhoeddi	2
Dynodwyr Gwrthrych Digidol (DOIs)	https://doi.org/10.1177/0973801016687869
Statws	Cyhoeddwyd - 4 Ebr 2017
Cyhoeddwyd yn allanol	Ie

NDC y CU

Mae’r allbwn hwn yn cyfrannu at y Nod(au) Datblygu Cynaliadwy canlynol

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10.1177/0973801016687869

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Dolen i’r cyhoeddiad yn Scopus

Dyfynnu hyn

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title = "The Effects of Capital Flows on Economic Growth in Senegal",

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.",

keywords = "Africa, Autoregressive Distributed Lags, Capital Flows, Economic Growth, Granger Causality Test, Senegal",

author = "Samuel Adams and Klobodu, {Edem Kwame Mensah} and Lamptey, {Richmond Odartey}",

note = "Publisher Copyright: {\textcopyright} 2017, {\textcopyright} 2017 National Council of Applied Economic Research.",

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AU - Adams, Samuel

AU - Klobodu, Edem Kwame Mensah

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N2 - 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.

AB - 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.

KW - Africa

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KW - Granger Causality Test

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