THE IMPACT OF FOREIGN CAPITAL INFLOWS ON ECONOMIC GROWTH : CASE OF ALGERIA
- 주제(키워드) Foreign capital inflows , GDP , FDI , Remittances
- 발행기관 아주대학교
- 지도교수 Choi, Hee Gab
- 발행년도 2018
- 학위수여년월 2018. 2
- 학위명 석사
- 학과 국제대학원 국제통상학과
- 실제URI http://www.dcollection.net/handler/ajou/000000026690
- 본문언어 영어
- 저작권 아주대학교 논문은 저작권에 의해 보호받습니다.
초록/요약
The aim of this study is to investigate empirically the impact of foreign capital inflows on the economic growth in Algeria and in closing the saving-investment gap, specifically to test whether the two selected variables; FDI and Remittances have an impact on growth in both short and long run. The study carried out based on a data from 1985-2015 by considering the relationship between GDP, FDI, and REM. The analyses are conducted through econometric methods. In this study, the cointegration model was estimated by applying the Engle-Granger (1989) two-step estimation procedure, the basic unit root test based on ADF is conducted to test the integrating order and found that two variables LOGGDP and LOGREM are stationary in the first difference, however, LOGFDI is found stationary at level. Regarding to the empirical result, and based on VAR equation, FDI showed a significant effect on economic growth in Algeria, which means that FDI is playing a positive role in boosting the economic growth in Algeria. However, remittances showed a negligible impact on GDP, which can be explained mainly by the dissipating of this money on consumption without using them in activities that can create any added value or boost the development in the country.
more목차
CHAPTER 1: INTRODUCTION 1
1.1 Background 1
1.2 Statement of Problem 2
1.3 Purpose of Study 2
1.4 Limitations of the study 3
CHAPTER 2: LITERATURE REVIEW, METHODOLOGY AND DATA 4
2.1 Theoretical Framework 4
2.2 Empirical reviews 5
2.3 Methodology 7
2.4 Source of Data 8
CHAPTER 3: OVERVIEW OF ECONOMY AND CAPITAL INFLOWS IN ALGERIA 9
3.1 Gross Domestic Product 9
3.2 Capital inflows 10
3.3 Foreign Direct Investment 12
3.4 Remittances 18
CHAPTER 4: EMPIRICAL RESULT AND DISCUSSION 22
4.1 Augmented Dickey-Fuller unit root test 22
4.2 Regression Model: Ordinary Least Squares Test 23
4.3 Residual ADF Unit Root test 24
4.4 Lag selection 25
4.5 Estimation of VAR Model 25
4.6 VAR Granger causality test 27
4.7 Diagnostic test of Residuals 28
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS 30
5.1 Conclusion 30
5.2 Recommendations 31
REFERENCES 32
APPENDIX 35
