Sushanta Mallick|Tomoe Moore
Foreign Capital in a Growth Model
University of London|Brunel University London
abstract within mechanism endogenous growth paper empirically investigates impact financial capital economic growth panel 60 developing countries channel domestic capital formation estimating model different income groups found private fdi flows exert beneficial complementarity effects domestic capital formation across incomegroup countries official financial flows contribute increasing investment middle income economies low income countries latter appears demonstrate aidgrowth nexus supported middle income countries whereas misallocation official inflows likely exist low income countries suggesting aid effectiveness remains conditional domestic policy environment