Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria

Understanding the growth process is central to development economics. Analyzing and interpreting the determinants of growth, either the process has worked or failed in countries is ultimately an empirical issue. This study attempts to explain this issue not limited to the economic impact of FCI, dom...

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Main Author:	Nid, Mohammed Tahar
Format:	Thesis
Language:	eng eng
Published:	2012
Subjects:	HG Finance
Online Access:	https://etd.uum.edu.my/3249/1/MOHAMMED_TAHAR_NID.pdf https://etd.uum.edu.my/3249/3/MOHAMMED_TAHAR_NID.pdf
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id	my-uum-etd.3249
record_format	uketd_dc
institution	Universiti Utara Malaysia
collection	UUM ETD
language	eng eng
advisor	Dahalan, Jauhari
topic	HG Finance
spellingShingle	HG Finance Nid, Mohammed Tahar Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria
description	Understanding the growth process is central to development economics. Analyzing and interpreting the determinants of growth, either the process has worked or failed in countries is ultimately an empirical issue. This study attempts to explain this issue not limited to the economic impact of FCI, domestic savings, and Interest rate on economic growth in Algeria but also on how they are related in a dynamic framework.The model for analysis was developed based on the Two Gaps economic growth model.The analysis of this relationship is based on annual time series data for the period of 1980-20 10. This study employs approaches in its estimation of the dynamic relationship vector error correction model and granger causality. The results show that domestic savings have a positive and significant effect, but foreign capital inflows are insignificant to Algeria's economic growth in the long run. Also, the interest rate has significant influence towards economic growth in Algeria in the long run, The insignificant impact of FCI on economic Growth in Algeria, Could be due to the fact that FCI in Algeria during the period of the study is quite small. The finding, particularly on interest rates and savings has some policy relevance at the macro development perspective.
format	Thesis
qualification_name	masters
qualification_level	Master's degree
author	Nid, Mohammed Tahar
author_facet	Nid, Mohammed Tahar
author_sort	Nid, Mohammed Tahar
title	Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria
title_short	Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria
title_full	Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria
title_fullStr	Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria
title_full_unstemmed	Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria
title_sort	foreign capital inflows, domestic savings, and economic growth: the case of algeria
granting_institution	Universiti Utara Malaysia
granting_department	Othman Yeop Abdullah Graduate School of Business
publishDate	2012
url	https://etd.uum.edu.my/3249/1/MOHAMMED_TAHAR_NID.pdf https://etd.uum.edu.my/3249/3/MOHAMMED_TAHAR_NID.pdf
_version_	1747827530737385472
spelling	my-uum-etd.32492016-04-20T04:06:20Z Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria 2012-06 Nid, Mohammed Tahar Dahalan, Jauhari Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HG Finance Understanding the growth process is central to development economics. Analyzing and interpreting the determinants of growth, either the process has worked or failed in countries is ultimately an empirical issue. This study attempts to explain this issue not limited to the economic impact of FCI, domestic savings, and Interest rate on economic growth in Algeria but also on how they are related in a dynamic framework.The model for analysis was developed based on the Two Gaps economic growth model.The analysis of this relationship is based on annual time series data for the period of 1980-20 10. This study employs approaches in its estimation of the dynamic relationship vector error correction model and granger causality. The results show that domestic savings have a positive and significant effect, but foreign capital inflows are insignificant to Algeria's economic growth in the long run. Also, the interest rate has significant influence towards economic growth in Algeria in the long run, The insignificant impact of FCI on economic Growth in Algeria, Could be due to the fact that FCI in Algeria during the period of the study is quite small. The finding, particularly on interest rates and savings has some policy relevance at the macro development perspective. 2012-06 Thesis https://etd.uum.edu.my/3249/ https://etd.uum.edu.my/3249/1/MOHAMMED_TAHAR_NID.pdf text eng validuser https://etd.uum.edu.my/3249/3/MOHAMMED_TAHAR_NID.pdf text eng public masters masters Universiti Utara Malaysia Aghion,P., D.Cornin., & P.Howitt, (2006). 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Foreign Capital Inflows, Domestic Savings, and Economic Growth: The Case of Algeria

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