EconPapers    
Economics at your fingertips  
 

Foreign Financial Flows, Human Capital and Economic Growth in North African Countries

Imen Mohamed Sghaier
Additional contact information
Imen Mohamed Sghaier: Higher Institute of Business Administration, University of Sfax, Tunisia

Economic Alternatives, 2021, issue 3, 355-371

Abstract: The purpose of this study is to analyze the relationship between foreign financial flows (i.e., FDI inflows and remittances), human capital, and its effects on economic growth in 4 North African countries. Annual panel data from 2000 to 2018 are examined using the system GMM. First, we found strong evidence of a positive link between FDI and economic growth. Moreover, the results indicate that the complementarity between FDI and human capital positively influences economic growth. Second, the remittances are found to be positive factors for economic growth. In fact, higher human capital accumulation of receiving countries increases these positive impacts. Overall, the results indicate that foreign financial flows are positively correlated with human capital in influencing economic growth in the North African countries. Therefore, it becomes pertinent for policymakers to pursue a human capital policy to improve their absorptive capacities to exploit full benefits of foreign financial flows.

Keywords: economic growth; FDI; human capital; remittances (search for similar items in EconPapers)
JEL-codes: F21 F24 F35 N97 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.unwe.bg/doi/eajournal/2021.3/EA.2021.3.02.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nwe:eajour:y:2021:i:3:p:355-371

Access Statistics for this article

More articles in Economic Alternatives from University of National and World Economy, Sofia, Bulgaria Contact information at EDIRC.
Bibliographic data for series maintained by Vanya Lazarova ().

 
Page updated 2021-10-16
Handle: RePEc:nwe:eajour:y:2021:i:3:p:355-371