The Link Between Capital Account Liberalization and Economic Growth: A Dynamic Panel Approach

15 Pages Posted: 18 Aug 2008 Last revised: 11 Nov 2008

See all articles by Houssem Rachdi

Houssem Rachdi

Institut des Hautes Etudes Commerciales (IHEC)

Hichem Saiidi

University of Tunis - Faculty of Economic Sciences and Management (ESSEC)

Date Written: October 28, 2008

Abstract

The objective of this study is to rule on the correlation between liberalization of the capital account and economic growth. We were in particular interested in the channels of foreign direct investment and portfolio investment. Our empirical study was carried out on a sample of 100 developed and developing countries over the period 1984-2003. Our econometric results reveal a positive correlation between the liberalization of the capital account and economic growth via foreign direct n investment and portfolio investment. What leaves predict that the opening of the capital account is an indispensable condition to start the economic growth.

Note: Downloadable document is in French.

Keywords: Capital account, economic growth, foreign direct investment, portfolio investment and dynamic panel data

JEL Classification: F36, F43, F23, G15

Suggested Citation

Rachdi, Houssem and Saiidi, Hichem, The Link Between Capital Account Liberalization and Economic Growth: A Dynamic Panel Approach (October 28, 2008). Available at SSRN: https://ssrn.com/abstract=1229362 or http://dx.doi.org/10.2139/ssrn.1229362

Houssem Rachdi (Contact Author)

Institut des Hautes Etudes Commerciales (IHEC) ( email )

Carthage Presidence
Carthage, Tunis 2016
Tunisia

Hichem Saiidi

University of Tunis - Faculty of Economic Sciences and Management (ESSEC) ( email )

B P 477
Le Bardo 2000
Le Bardo, TN Tunis 2000
Tunisia

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