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International Capital Mobility in African Countries: Do the legal origins matter?

Author

Listed:
  • Chrysost Bangaké

    (LEO, University of Orléans (France))

  • Jude Eggoh

    (LEO, University of Orléans (France))

Abstract

This paper investigates the Feldstein-Horioka coefficients and legal origins for 37 African countries using the recently developed panel cointegration techniques. The empirical findings reported in the paper reveal that savings and investment are nonstationary and cointegrated series. The estimated coefficients using DOLS is 0.58 for the sample as a whole for the period 1970-2006. However, there are marked differences in retentions ratios in each country group with ratio lowest in common law countries (0.34) compared to French civil law countries (0.85). These results imply that in the countries with strong legal protections of investors, capital tends to be mobile internationally than in countries with worse protection.

Suggested Citation

  • Chrysost Bangaké & Jude Eggoh, 2010. "International Capital Mobility in African Countries: Do the legal origins matter?," Economics Bulletin, AccessEcon, vol. 30(1), pages 73-83.
    • Handle: RePEc:ebl:ecbull:eb-09-00724
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    Feldstein-Horioka coefficient; panel unit root tests; DOLS panel cointegration; Africa.;
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    JEL classification:

    • F3 - International Economics - - International Finance

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