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Rivers State University, Port Harcourt.
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| Title: | Foreign Capital Inflows and Human Development in ECOWAS |
| Author(s): | Onyewuchi C. E, Amadi S. N. Ewubare D.B & Chukwu S.N |
| Abstract: | This study examines the relationship between foreign capital inflows and economic development in selected countries in the ECOWAS with a focus on Ghana, Guinea, Liberia, Nigeria, Sierra Leone, Niger, Mali, Senegal, Cote d'Ivoire and Burkina Faso. In particular, foreign capital inflows were measured by foreign direct investments (FDI) inflows, net official development assistance (ODA) inflows, remittances inflow and external debt stocks while human development index (HDI), employment generation, real gross domestic product (GDP) growth and gross national income (GNI) per capita were employed to measure economic development in the ten selected countries. Panel datasets required for this study were obtained from the World Bank database, UNDP Human Development Reports and IMF Financial Statistics. The data were analysed using descriptive statistics, panel unit root test, Rao cointegration tests, panel ARDL estimation involving mean group (MG) and pooled mean group (PMG) estimators, and the Hausman test. The panel unit root test results showed that the variables are mixed integrated with evidence of I(0) and I(1) series in the model while the Rao cointegration test results showed a long-run relationship among the variables in the model. The findings from the estimated panel ARDL results showed that FDI inflow positively and significantly influenced HDI inflows. At the same time, the results showed that remittances inflow and ODA contributed positively to HDI. on economic development indicators was also established from the long-run results. On the other hand, the results further showed that external debt negatively affected HDI. Given the findings, this study concludes that capital inflows in the forms of FDI, ODA and remittances are imperative for the long-term development of human capital. |
| Keywords: | Human development, foreign capital, FDI, remittances, development aid, external debt and ECOWAS |
| Journal: | Journal of Economic Research and Development Studies Vol 1 No 1 |
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