<abstract xmlns="http://www.w3.org/1999/xhtml"><p>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.</p></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.

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

Department of Economics and Quantitative Methods

Economics and Business Review

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"The impact of private capital flows on economic growth in the MENA region"}

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...

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

Published Online: Aug 24, 2020

Page range: 45 - 67

Received: Mar 16, 2020

Accepted: Jul 27, 2020

DOI: https://doi.org/10.18559/ebr.2020.3.3

Keywords
private capital flows, economic growth, MENA, fixed effect panel quantile

© 2020 Ousama Ben-Salha et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

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

Published Online: Aug 24, 2020

Page range: 45 - 67

Received: Mar 16, 2020

Accepted: Jul 27, 2020

DOI: https://doi.org/10.18559/ebr.2020.3.3

Keywordsprivate capital flows, economic growth, MENA, fixed effect panel quantile

© 2020 Ousama Ben-Salha et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
private capital flows, economic growth, MENA, fixed effect panel quantile