Do Capital Inflows Boost Growth in Developing Countries?

Calderon, Cesar; Nguyen, Ha

doi:10.1596/1813-9450-7298

Working Paper

Do Capital Inflows Boost Growth in Developing Countries? : Evidence from Sub-Saharan Africa

collection.link.5	https://openknowledge.worldbank.org/handle/10986/9
collection.name.5	Policy Research Working Papers
dc.contributor.author	Calderon, Cesar
dc.contributor.author	Nguyen, Ha
dc.date.accessioned	2015-07-16T14:52:33Z
dc.date.available	2015-07-16T14:52:33Z
dc.date.issued	2015-06
dc.date.lastModified	2021-04-23T14:04:07Z
dc.description.abstract	This paper examines whether domestic output growth helps attract capital inflows and, in turn, capital inflows help boost output growth in a set of 38 Sub-Saharan African countries. Using a two-step approach to address reverse causality and omitted variable issues, the paper finds that output growth in countries in Sub-Saharan Africa does not attract capital inflows. However, aid and foreign direct investment inflows enhance growth, while sovereign debt inflows do not. A 1 percent increase in the level of real aid inflows raises growth of real output per capita by 0.022 percentage point. For foreign direct investment inflows, the figure is 0.002 percentage point.	en
dc.identifier	http://documents.worldbank.org/curated/en/2015/06/24604145/capital-inflows-boost-growth-developing-countries-evidence-sub-saharan-africa
dc.identifier.uri	http://hdl.handle.net/10986/22171
dc.language	English
dc.language.iso	en_US
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research working paper,no. WPS 7298;
dc.relation.ispartofseries	Policy Research Working Paper;No. 7298
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	CAPITAL MARKETS
dc.subject	BORROWER
dc.subject	FUTURE GROWTH
dc.subject	FOREIGN CAPITAL
dc.subject	ECONOMIC GROWTH
dc.subject	CONCESSIONAL TERMS
dc.subject	SIGNIFICANT EFFECT
dc.subject	COMMODITY EXPORT
dc.subject	INTERNATIONAL CAPITAL
dc.subject	MONETARY ECONOMICS
dc.subject	FOREIGN INVESTORS
dc.subject	COUNTRY FIXED EFFECTS
dc.subject	ECONOMIC LITERATURE
dc.subject	INCOME
dc.subject	INTEREST
dc.subject	EXCHANGE
dc.subject	ECONOMIC REVIEW
dc.subject	DEVELOPING COUNTRIES
dc.subject	POLITICAL ECONOMY
dc.subject	WORLD DEVELOPMENT INDICATORS
dc.subject	WELFARE
dc.subject	FOREIGN DIRECT INVESTORS
dc.subject	PRICE
dc.subject	WEALTH
dc.subject	DEVELOPING COUNTRY
dc.subject	DEVELOPED COUNTRIES
dc.subject	ECONOMIC ACTIVITY
dc.subject	ADVANCED COUNTRIES
dc.subject	LONG TERM
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	ADVANCED ECONOMIES
dc.subject	LOW-INCOME COUNTRIES
dc.subject	FOOD PRICE
dc.subject	DEBTS
dc.subject	INTEREST RATES
dc.subject	MONETARY FUND
dc.subject	DEBT
dc.subject	FINANCIAL CRISES
dc.subject	PER CAPITA GROWTH
dc.subject	FINANCIAL FLOWS
dc.subject	EXPLANATORY VARIABLES
dc.subject	BUSINESS CYCLE
dc.subject	PRIVATE CAPITAL FLOWS
dc.subject	LOANS
dc.subject	PRIVATE CAPITAL
dc.subject	OUTPUT GROWTH
dc.subject	MACROECONOMIC VULNERABILITIES
dc.subject	COMMODITY PRICE
dc.subject	INVESTMENT DECISIONS
dc.subject	EQUITY
dc.subject	DEVELOPMENT RESEARCH
dc.subject	GOLD STANDARD
dc.subject	INVESTORS
dc.subject	SOVEREIGN DEBT
dc.subject	HUMAN CAPITAL
dc.subject	COUNTRY LEVEL
dc.subject	ECONOMIC PERFORMANCE
dc.subject	CAPITAL
dc.subject	VOLATILITY
dc.subject	ECONOMIC STUDIES
dc.subject	FUTURE
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN INVESTMENT
dc.subject	POOR COUNTRIES
dc.subject	LEVELS OF CAPITAL
dc.subject	INCOME COUNTRIES
dc.subject	CAPITAL FLOWS
dc.subject	INTERNATIONAL CAPITAL FLOWS
dc.subject	PRIVATE SECTOR
dc.subject	SOVEREIGN BORROWING
dc.subject	ECONOMICS
dc.subject	PUBLIC DEBT
dc.subject	OUTPUT
dc.subject	GROWTH DEBATE
dc.subject	FIXED EFFECTS
dc.subject	GOVERNANCE
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	TRADE
dc.subject	SOVEREIGN DEBTS
dc.subject	INTERESTS
dc.subject	GROWTH RESIDUALS
dc.subject	ACCESS TO CAPITAL MARKETS
dc.subject	FINANCIAL DEVELOPMENT
dc.subject	GROWTH RESIDUAL
dc.subject	FINANCIAL MARKET
dc.subject	INTERNATIONAL FINANCIAL MARKET
dc.subject	CROSS-COUNTRY EVIDENCE
dc.subject	INVESTMENT
dc.subject	GROWTH REGRESSIONS
dc.subject	NEOCLASSICAL MODELS
dc.subject	SHARE
dc.subject	NEOCLASSICAL MODEL
dc.subject	FINANCIAL MARKETS
dc.subject	REAL OUTPUT
dc.subject	CAPITAL INFLOWS
dc.subject	EXTERNAL DEBT
dc.subject	CONSUMER PRICE INDEX
dc.subject	CAPITAL FLOW
dc.subject	INCREASE GROWTH
dc.subject	POLICY RESEARCH
dc.subject	FOREIGN BORROWING
dc.subject	MACROECONOMIC POLICIES
dc.subject	GROWTH MEANS
dc.subject	PRICE INDEX
dc.subject	COMMODITY PRICES
dc.subject	COUNTRY SPECIFIC
dc.subject	COMMODITY
dc.subject	DEVELOPMENT INDICATORS
dc.subject	PRICES
dc.subject	LEVEL OF CAPITAL
dc.subject	DEVELOPMENT POLICY
dc.subject	GROWTH
dc.title	Do Capital Inflows Boost Growth in Developing Countries?	en
dc.title.subtitle	Evidence from Sub-Saharan Africa	en
dc.type	Working Paper	en
okr.date.disclosure	2015-06-09
okr.doctype	Publications & Research
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.docurl	http://documents.worldbank.org/curated/en/2015/06/24604145/capital-inflows-boost-growth-developing-countries-evidence-sub-saharan-africa
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Finance and Markets
okr.googlescholar.linkpresent	yes
okr.identifier.doi	10.1596/1813-9450-7298
okr.identifier.externaldocumentum	090224b082f0d902_1_0
okr.identifier.internaldocumentum	24604145
okr.identifier.report	WPS7298
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2015/06/09/090224b082f0d902/1_0/Rendered/PDF/Do0capital0inf0m0Sub0Saharan0Africa.pdf	en
okr.region.administrative	Africa
okr.region.geographical	North Africa
okr.topic	Finance and Financial Sector Development :: Capital Markets and Capital Flows
okr.topic	Finance and Financial Sector Development :: Finance and Development
okr.topic	Finance and Financial Sector Development :: International Financial Markets
okr.topic	Macroeconomics and Economic Growth :: Economic Growth
okr.topic	Macroeconomics and Economic Growth :: Economic Investment & Savings
okr.topic	Macroeconomics and Economic Growth :: Economic Theory & Research
okr.unit	Macroeconomics and Growth Team, Development Research Group; and the Office of Chief Economist, Africa Region

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Do Capital Inflows Boost Growth in Developing Countries? : Evidence from Sub-Saharan Africa

This item appears in the following Collection(s)

Shared Prosperity and Poverty Eradication in Latin America and the Caribbean

Shock Waves : Managing the Impacts of Climate Change on Poverty

Rethinking Power Sector Reform in the Developing World

Ride the Wild Surf : An Investigation of the Drivers of Surges in Capital Inflows

Philippines Quarterly Update, September 2010 : Stepping Up Reforms to Sustain Growth

From Tapering to Tightening : The Impact of the Fed's Exit on India

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Do Capital Inflows Boost Growth in Developing Countries? : Evidence from Sub-Saharan Africa

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Shared Prosperity and Poverty Eradication in Latin America and the Caribbean

Shock Waves : Managing the Impacts of Climate Change on Poverty

Rethinking Power Sector Reform in the Developing World

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