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Volume 6 (20) Number 3 pp. 45-67

1Ousama Ben-Salha, 2Mourad Zmami

1Department of Economics, Northern Border University, Arar, Saudi Arabia; Department of Economics, University of Sousse, Tunisia; Economic Research Forum, Egypt.
2
Department of Economics, Northern Border University, Saudi Arabia; Department of Economics and Quantitative Methods, University of Tunis, Tunis, Tunisia,

The impact of private capital flows on economic growth in the MENA region

Abstract:

The aim of the article is to conduct an empirical analysis of the impact of
aggregate and disaggregate private capital flows on economic growth in eleven MENA
countries between 1980 and 2018. Unlike prior empirical studies, the fixed effect panel
quantile approach developed by Canay (2011) is implemented. Findings suggest
that there is a significant difference in the effects of private capital flows on economic
growth across lower and higher quantiles. More specifically, the effects of total private
capital flows, foreign direct investment flows, portfolio flows and debt flows are positive
and statistically significant only for low and medium quantiles, indicating that
the enhancing impact of private capital flows in terms of economic growth is only
confirmed in countries with relatively low and medium growth rates. Moreover, debt
flows affect economic growth in countries recording high growth rates, stressing the
importance of financial development in routing those flows into the most productive
projects in the economy.

pub/2020_3_45.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume20/issue3/2020_3_45.pdf
Keywords: private capital flows, economic growth, MENA, fixed effect panel quantile

DOI: 10.18559/ebr.2020.3.3

For citation:

MLA Ben-Salha, Ousama, and Mourad Zmami. "The impact of private capital flows on economic growth in the MENA region." Economics and Business Review EBR 20.3 (2020): 45-67. DOI: 10.18559/ebr.2020.3.3
APA Ben-Salha, 1., & Zmami, 2. (2020). The impact of private capital flows on economic growth in the MENA region. Economics and Business Review EBR 20(3), 45-67 DOI: 10.18559/ebr.2020.3.3
ISO 690 BEN-SALHA, Ousama, ZMAMI, Mourad. The impact of private capital flows on economic growth in the MENA region. Economics and Business Review EBR, 2020, 20.3: 45-67. DOI: 10.18559/ebr.2020.3.3