The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?

The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?

This study attempts to explain of foreign capital inflows (foreign direct investment (FDI), remittances and aid), corruption and political stability on economic growth of Yemen. However, FDI, Official Development Assistance (ODA) and Personal Remittances have been considered as component of FCI. Fu...

Full description

Saved in:
Bibliographic Details
Main Author: Bahattab, Abduarhman Salim Abduallah
Format: Thesis
Language:eng
eng
Published: 2015
Subjects:
HC Economic History and Conditions
Online Access:https://etd.uum.edu.my/5563/1/s815004_01.pdf
https://etd.uum.edu.my/5563/2/s815004_02.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
id my-uum-etd.5563
record_format uketd_dc
institution Universiti Utara Malaysia
collection UUM ETD
language eng
eng
advisor Azam, Muhammad
topic HC Economic History and Conditions
spellingShingle HC Economic History and Conditions
Bahattab, Abduarhman Salim Abduallah
The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?
description This study attempts to explain of foreign capital inflows (foreign direct investment (FDI), remittances and aid), corruption and political stability on economic growth of Yemen. However, FDI, Official Development Assistance (ODA) and Personal Remittances have been considered as component of FCI. Furthermore, the model for analysis was developed based on the Two Gaps economic growth model. However, Augmented Dickey-Fuller (ADF) test is used to check for stationarity and Ordinary Least Square (OLS) estimator has been applied for estimation purposes. The analysis of this relationship is based on annual time series data for the period of 2003-2013; while the data have been taken from the World Development Indicators (2015), World Governance Indicators (2015) and some other sources. Furthermore, the correlation between FDI inflows and other variables at the lowest level and the correlation among ODA, political stability and corruption is more than 80% during the study period. The results show that FDI and ODA have a positive and significant effect on economic growth of Yemen, but personal remittances have significant and negative effects on Yemen's economic growth. In addition, corruption and political stability that explain institution environment are insignificance for economic growth of Yemen. However, the insignificant of corruption and political stability could be due to the fact that correlation is higher than 85% and positive in Yemen during the period of the study. The findings, particularly on FDI, personal remittances, corruption and political stability have some policy relevance at the macro development perspective
format Thesis
qualification_name masters
qualification_level Master's degree
author Bahattab, Abduarhman Salim Abduallah
author_facet Bahattab, Abduarhman Salim Abduallah
author_sort Bahattab, Abduarhman Salim Abduallah
title The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?
title_short The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?
title_full The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?
title_fullStr The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?
title_full_unstemmed The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter?
title_sort impact of foreign capital inflows on economic growth of yemen: does institutional factors matter?
granting_institution Universiti Utara Malaysia
granting_department Othman Yeop Abdullah Graduate School of Business
publishDate 2015
url https://etd.uum.edu.my/5563/1/s815004_01.pdf
https://etd.uum.edu.my/5563/2/s815004_02.pdf
_version_ 1747827950505426944
spelling my-uum-etd.55632021-03-18T06:31:48Z The impact of foreign capital inflows on economic growth of Yemen: Does institutional factors matter? 2015 Bahattab, Abduarhman Salim Abduallah Azam, Muhammad Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business HC Economic History and Conditions This study attempts to explain of foreign capital inflows (foreign direct investment (FDI), remittances and aid), corruption and political stability on economic growth of Yemen. However, FDI, Official Development Assistance (ODA) and Personal Remittances have been considered as component of FCI. Furthermore, the model for analysis was developed based on the Two Gaps economic growth model. However, Augmented Dickey-Fuller (ADF) test is used to check for stationarity and Ordinary Least Square (OLS) estimator has been applied for estimation purposes. The analysis of this relationship is based on annual time series data for the period of 2003-2013; while the data have been taken from the World Development Indicators (2015), World Governance Indicators (2015) and some other sources. Furthermore, the correlation between FDI inflows and other variables at the lowest level and the correlation among ODA, political stability and corruption is more than 80% during the study period. The results show that FDI and ODA have a positive and significant effect on economic growth of Yemen, but personal remittances have significant and negative effects on Yemen's economic growth. In addition, corruption and political stability that explain institution environment are insignificance for economic growth of Yemen. However, the insignificant of corruption and political stability could be due to the fact that correlation is higher than 85% and positive in Yemen during the period of the study. The findings, particularly on FDI, personal remittances, corruption and political stability have some policy relevance at the macro development perspective 2015 Thesis https://etd.uum.edu.my/5563/ https://etd.uum.edu.my/5563/1/s815004_01.pdf text eng public https://etd.uum.edu.my/5563/2/s815004_02.pdf text eng public masters masters Universiti Utara Malaysia Abdouli, M., & Hammami, S. (2015). The Impact of FDI Inflows and Environmental Quality on Economic Growth: an Empirical Study for the MENA Countries. Journal of the Knowledge Economy, 1-25. Aisen, A., & Veiga, F. J. (2013). How does political instability affect economic growth? European Journal of Political Economy, 29, 151-167. Aizenman, J., Jinjarak, Y., & Park, D. (2011). Capital flows and economic growth in the era of financial integration and crisis, 1990-2010: National Bureau of Economic Research. Aizenman, J., & Sushko, V. (2011). Capital flows: Catalyst or Hindrance to economic takeoffs? : National Bureau of Economic Research. AZAM, M. (2014). Foreign Aid and Economic Growth: Lessons for Pakistan. Journal of Applied Economic Sciences (JAES)(IX_2 (28), 165-180. Azam, M. (2015). The role of migrant workers remittances in fostering economic growth: The four Asian developing countries’ experiences. International Journal of Social Economics, 42(8), 690-705. Azam, M., & Ahmed, A. M. (2015). Role of human capital and foreign direct investment in promoting economic growth: evidence from Commonwealth of Independent States. International Journal of Social Economics, 42(2), 98-111. Azam, M., & Emirullah, C. (2014). The role of governance in economic development: Evidence from some selected countries in Asia and the Pacific. International Journal of Social Economics, 41(12), 1265-1278. Azam, M., & Hassan, S. (2013). Corruption, workers remittances, FDI and economic growth in five South and South East Asian countries: A panel data approach. Middle-East Journal of Scientific Research, 15(2), 184-190. Azam, M., Ibrahim, Y., & Bakhtyar, B. (2014). Foreign direct investment and economic growth in Asia. Aktual'ni Problemy Ekonomiky= Actual Problems in Economics(161), 58. Balasubramanyam, V. N., Salisu, M., & Sapsford, D. (1996). Foreign direct investment and growth in EP and IS countries. The economic journal, 92-105. Baldi, G., & Miethe, J. (2015). Foreign Direct Investment and Economic Growth: DIW Roundup: Politik im Fokus. Boone, P. (1994). The impact of foreign aid on savings and growth: London School of Economics and Political Science, Centre for Economic Performance. Borensztein, E., De Gregorio, J., & Lee, J.-W. (1998). How does foreign direct investment affect economic growth? Journal of international Economics, 45(1), 115-135. Casper, G. R. (2014). Poverty: Inhibitor of Yemeni Revolution. Catrinescu, N., Leon-Ledesma, M., Piracha, M., & Quillin, B. (2009). Remittances, institutions, and economic growth. World Development, 37(1), 81-92. Central Bank of Yemen. (2013). Annual Report. from http://www.centralbank.gov.ye/newslettar. aspx?keyid=47&pid=46&lang=1&cattype=6 Chenery, H. B., & Strout, A. M. (1966). Foreign assistance and economic development. The American Economic Review, 679-733. de Haan, J. (2014). Yemen: Factors behind Possible Economic and Political Collapse. Domar, E. D. (1946). Capital expansion, rate of growth, and employment. Econometrica, Journal of the Econometric Society, 137-147. Driffield, N., & Jones, C. (2013). Impact of FDI, ODA and migrant remittances on economic growth in developing countries: A systems approach. European Journal of Development Research, 25(2), 173-196. Durlauf, S. (2002). Policy Evaluation and Empirical Growth Research. Central Banking, Analysis, and Economic Policies Book Series, 6, 163-190. Enos, J., & Griffin, K. B. (1971). Foreign assistance: Objectives and consequences: A reply to our critics. Economic Development and Cultural Change, 155-158. Feeny, S., Iamsiraroj, S., & McGillivray, M. (2014). Remittances and economic growth: larger impacts in smaller countries? The Journal of Development Studies, 50(8), 1055-1066. Freckleton, M., Wright, A., & Craigwell, R. (2012). Economic growth, foreign direct investment and corruption in developed and developing countries. Journal of economic studies, 39(6), 639-652. Ghoneim, A. F., & Ezzat, A. M. (2014). Growth and Corruption in Arab Countries: What Type of Relationship Connects Them? Gourinchas, P.-O., & Jeanne, O. (2013). Capital flows to developing countries: The allocation puzzle. The Review of Economic Studies, rdt004. Hamdan, A. A. A.-J. (2013). Foreign Direct Investment and Capital Budgiting Practices in Yemen. (Ph.D), Universiti Utara Malaysia, Malaysia. Harrod, R. F. (1939). An essay in dynamic theory. The economic journal, 14-33. Huang, C.-J. (2015). Is corruption bad for economic growth? Evidence from Asia-Pacific countries. The North American Journal of Economics and Finance. Jin, S. K., & Oh, C.-H. (2012). Revisiting Effects and Strategies of Official Development Assistance (ODA): A Panel Analysis. International Review of Public Administration, 17(3), 139-167. Kenny, C., & Williams, D. (2001). What do we know about economic growth? or, why don't we know very much? World Development, 29(1), 1-22. Khan, A. H., Hasan, L., Malik, A., & Knerr, B. (1992). Dependency Ratio, Foreign Capital Inflows and the Rate of Savings in Pakistan [with Comments]. The Pakistan Development Review, 843-856. Kolawole, B. O. (2013). Foreign assistance and economic growth in Nigeria: The two-gap model framework. American International Journal of Contemporary Research, 3(10), 153-160. Kunieda, T., Okada, K., & Shibata, A. (2014). Corruption, capital account liberalization, and economic growth: Theory and evidence. International Economics, 139, 80-108. Leff, N. H. (1969). Dependency rates and savings rates. The American Economic Review, 886-896. Lessmann, C., & Markwardt, G. (2012). Aid, growth and devolution. World Development, 40(9), 1723-1749. Lucas, R. E. (1988). On the mechanics of economic development. Journal of monetary economics, 22(1), 3-42. Makki, S. S., & Somwaru, A. (2004). Impact of foreign direct investment and trade on economic growth: Evidence from developing countries. American Journal of Agricultural Economics, 86(3), 795-801. Mauro, P. (1995). Corruption and growth. The quarterly journal of economics, 681-712. Musibah, A. S., Shahzad, A., & Fadzil, F. H. B. (2015). Impact of Foreign Investment in the Yemen's Economic Growth: The Country Political Stability as a Main Issue. Asian Social Science, 11(4), p102. Nkoro, E., & KelvinUko, A. (2012). Foreign capital inflows and economic growth in Nigeria: An empirical approach. Asian Journal of Empirical Research, 2(5), 149-161. North, D. C. (1956). International capital flows and the development of the American West. The Journal of Economic History, 16(04), 493-505. Nsiah, C., & Fayissa, B. (2013). Remittances and economic growth in Africa, Asia, and Latin American-Caribbean countries: a panel unit root and panel cointegration analysis. Journal of Economics and Finance, 37(3), 424-441. Okada, K., & Samreth, S. (2012). The effect of foreign aid on corruption: A quantile regression approach. Economics Letters, 115(2), 240-243. Orji, A., Uche, A. S., & Ilori, E. A. (2014). Foreign Capital Inflows and Growth: An Empirical Analysis of WAMZ Experience. International Journal of Economics and Financial Issues, 4(4), 971-983. Papanek, G. F. (1973). Aid, foreign private investment, savings, and growth in less developed countries. The Journal of Political Economy, 120-130. Rao, B. B., & Hassan, G. M. (2011). A panel data analysis of the growth effects of remittances. Economic modelling, 28(1), 701-709. Romer, P. M. (1986). Increasing returns and long-run growth. The Journal of Political Economy, 1002-1037. Selaya, P., & Sunesen, E. R. (2012). Does foreign aid increase foreign direct investment? World Development, 40(11), 2155-2176. Siraj, T. (2012). Official development assistance (ODA), public spending and economic growth in Ethiopia. Journal of Economics and International Finance, 4(8), 173-191. Swan, T. (1956). Economic growth and capital accumulation. Tahir, M., Khan, I., & Shah, A. M. (2015). Foreign Remittances, Foreign Direct Investment, Foreign Imports and Economic Growth in Pakistan: A Time Series Analysis. Arab Economic and Business Journal, 10(2), 82-89. Tekin, R. B. (2012). Economic growth, exports and foreign direct investment in Least Developed Countries: A panel Granger causality analysis. Economic modelling, 29(3), 868-878. The World Bank Group. (2015, September 15, 2015). World Development Indicators. from http://databank.worldbank.org/data/reports.aspx? source=World-Development-Indicators Transparency International Organisation. (2015). Corruption Perceptions Index. from https://www.transparency.org/

Similar Items