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

Calderon, Cesar ; Nguyen, Ha

World Bank, Washington, DC

关键词: CAPITAL MARKETS;    BORROWER;    FUTURE GROWTH;    FOREIGN CAPITAL;    ECONOMIC GROWTH;   

DOI  :  10.1596/1813-9450-7298
RP-ID  :  WPS7298

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper examines whether domesticoutput growth helps attract capital inflows and, in turn,capital inflows help boost output growth in a set of 38Sub-Saharan African countries. Using a two-step approach toaddress reverse causality and omitted variable issues, thepaper finds that output growth in countries in Sub-SaharanAfrica does not attract capital inflows. However, aid andforeign direct investment inflows enhance growth, whilesovereign debt inflows do not. A 1 percent increase in thelevel of real aid inflows raises growth of real output percapita by 0.022 percentage point. For foreign directinvestment inflows, the figure is 0.002 percentage point.