L'esprit du capitalisme capital étranger et développement

The spirit of capitalism foreign capital and economic development

Mohamed Jellal ()

MPRA Paper from University Library of Munich, Germany

Abstract: We consider a model of open economy with a culture of spirit of capitalism. As a first step, we show that the entry of foreign capital flows can support an endogenous economic growth of the host country. Further, our model shows a positive correlation between the entry of foreign direct investment and economic growth. The entry of foreign capital depends on both the quality of institutions as the quality of education and national culture of the host country. In particular, we show that the countries with strong culture of wealth accumulation attract more foreign investments that accelerated the pace of economic growth leading to a self sustaining virtuous circle. Our theoretical model can explain the miracle of the economic success of some Asian countries

Keywords: The Spirit of Capitalism; Wealth Accumulation; Open Economy; Foreign Capital; Endogenous Growth; Asian Countries (search for similar items in EconPapers)
JEL-codes: A13 F21 F23 F41 F63 O43 Z1 Z12 Z13 (search for similar items in EconPapers)
Date: 2014-08-04
New Economics Papers: this item is included in nep-hpe and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57777

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