The Effects of Foreign Capital Inflows on Economic Growth in East African Community (EAC)

2020 ◽  
Vol 24 (3) ◽  
pp. 101-127
Author(s):  
Sindayihebura Janviere ◽  
Utai Uprasen
Keyword(s):  
Economic Growth ◽  
Foreign Capital ◽  
Capital Inflows ◽  
East African ◽  
East African Community ◽  
African Community ◽  
Foreign Capital Inflows

scholarly journals Financial Liberalization, Economic Growth and Investment Strategy: Lessons from Taiwan for New Industrial Countries

2015 ◽  
Vol 3 (2) ◽  
pp. 188 ◽  
Author(s):  
Yu-Wei Lan ◽  
Dan Lin ◽  
Lu Lin
Keyword(s):  
Economic Growth ◽  
Institutional Investors ◽  
Foreign Capital ◽  
Investment Strategy ◽  
Capital Inflows ◽  
Investment Efficiency ◽  
The Real ◽  
Foreign Capital Inflows ◽  
Foreign Institutional Investors ◽  
The Impact

<p><em>To examine the impact of foreign capital inflows on Taiwan’s economy after internet bubbles of 2000, this study adopts data from the first quarter of 2001 to the second quarter 2015 to test if foreign capital inflows have positive impacts on Taiwan’s economic growth. This study also uses program trading and aims to prove that with financial liberalizations, the investment efficiency of foreign institutional investors is better than domestic institutional investors.</em></p><p><em>The results from the error correction model shows that capital formation, domestic savings and foreign direct investment all have positive relationships with the real economic growth. However, the rate of financing and foreign debt and depreciation all have negative relationships with the real economic growth. The results are all statistically significant. Hence, they do not completely support the hypothesis that foreign capital inflows are beneficial for economic growth.</em></p><p><em>Moreover, this study proves that the futures market in Taiwan is not strong-form market efficient. This result provides support for the hypothesis that the investment efficiency of foreign institutional investors is higher than that of domestic institutional investors. Investors can therefore raise their investment performance by following the investment strategies of foreign institutional investors.</em></p>

scholarly journals Investigating the Relationship Between Financial Integration and Economic Growth in the East African Community

2017 ◽  
Vol 13 (19) ◽  
pp. 249
Author(s):  
Onesmus Mutunga Nzioka
Keyword(s):  
Economic Growth ◽  
Financial Integration ◽  
Positive Impact ◽  
Simple Linear Regression ◽  
East African ◽  
East African Community ◽  
African Community ◽  
Economic Bloc ◽  
Gross Capital Flows ◽  
The Relationship

This study set out to investigate the relationship between financialintegration and economic growth in the EAC community states. Secondarydata on financial integration and GDP was obtained from worldbank and theEast African Community(EAC) community secretariat. The data wassubjected to simple linear regression and correlation analysis to achieve theset objective. The study found that, Gross capital flow to GDP (financialopenness) is positively correlated to economic growth (r=0.2093, p <0.05).The study also found that, 3.98% of the variations in economic growth, asmeasured by GDP per capita, within the countries are explained by financialintegration, as measured by the ratio of gross capital flows, 38.98% of thevariations in economic growth between the countries are explained byfinancial integration while 4.38% of the variations in economic growth of theEast African communityEAC as an economic bloc (considering panel data)are explained by financial integration. The findings confirm that, whencapital flows increase, economic growth also increases, pointing to thenecessity of the East African member states to explore ways of increasing thecapital flows between the countries. The researcher recommends conductingof a comparative study between the old and the new EAC to establishwhether the inclusion of Rwanda and Burundi, has had any positive impact(catalyzed) on the level of financial integration and economic growth.

Sustainable Development Goals and Their Implication on Economic Growth

2018 ◽  
pp. 47-65
Author(s):  
Mangasini Atanasi Katundu
Keyword(s):  
Economic Growth ◽  
Sustainable Development ◽  
Sustainable Development Goals ◽  
East African ◽  
Smallholder Farming ◽  
Member States ◽  
The Sustainable Development ◽  
East African Community ◽  
African Community ◽  
Development Goals

The MDGs have been criticised for being too narrow and leaving out many people and their needs, like mental health. Likewise, not all MDGs were implemented successfully in all countries. Some countries implemented one or two MDGs of their choice and left others untouched, others partially implemented all MDGs. It was on this basis that the UN member states met in Rio to frame the Sustainable Development Goals (SDGs). However, in order for the SDGs to address systemic challenges across economic, social, and ecological dimensions of sustainable development they require appropriate institutional support to effectively integrate them into institutions and practices, to coordinate activities, and to mobilize resources for implementation. Rising income inequality negatively impacts economic growth and is threatening sustainable development of East African Community (EAC) member states. Since, the SDGs are many, it is recommended that, East African Member states should adopt a targeted approach in implementing the SDGs and focus on the smallholder farming sector.

Foreign Capital and Economic Growth

1988 ◽  
Vol 23 (3) ◽  
pp. 302-310
Author(s):  
Raj Aggarwal
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Global Change ◽  
Foreign Capital ◽  
Development Aid ◽  
Capital Inflows ◽  
Private Capital ◽  
Competitive Markets ◽  
Poor Countries ◽  
Foreign Capital Inflows

In the current environment of significant global change, how can declining levels of development aid and private capital inflows be best used to promote economic growth in the developing countries? This question is addressed here and traditional analysis of this topic is complemented by taking a perspective that focuses on the limitations of how development aid and foreign capital inflows are usually allocated. It is suggested here that poor countries can benefit from a greater use of competitive markets to allocate development aid and private capital inflows.

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