Potential financing sources of investment and economic growth in North African countries: A causality analysis

Samir Abdelhafidh

Journal of Policy Modeling, 2013, vol. 35, issue 1, 150-169

Abstract: This paper investigates the causality interactions between potential financing sources of investment and economic growth in North African countries. For each one of them, trivariate vector autoregressive (VAR) models were estimated. We find that domestic saving follows their economic growth. We also find that the foreign capital-led growth hypothesis was frequently confirmed in Egypt and Algeria, but was observed only for grants in Morocco and Tunisia. These results underscore the merits of a case by case approach and have some policy implications on the more suitable financing sources to enhance economic growth in these countries.

Keywords: Foreign capital; Domestic saving; Economic growth; North African Countries (search for similar items in EconPapers)
JEL-codes: C32 E21 E22 F43 (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:35:y:2013:i:1:p:150-169

DOI: 10.1016/j.jpolmod.2012.01.001

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