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Complementarity between private capital flows and the development of regulatory institutions:Empirical evidence for North African countries

Author

Listed:
  • Bouzayani RAJAB

    (University of Sfax,Faculty of Economics and Management of Sfax,Tunisia)

  • Abida ZOUHEIR

    (University of Sfax,Faculty of Economics and Management of Sfax,Tunisia)

Abstract

Private capital flows are seen as factors for growth, development and the emergence of economies, which is why host country officials are putting in place incentive policies to attract the maximum foreign resources. This study analyzes the complementary relationship between private capital flows and the development of regulatory institutions and their effect in strengthening the level of economic growth in North African countries over the period from 1995 to 2020. The results of the regression of dynamic panel data by the econometric technique GMM clearly show the significant contribution of private capital flows and regulatory institutions to the improvement of the level of economic growth. The important relationship of complementarity between regulatory institutions and private capital in strengthening economic growth can be observed. This observation is due to the increased effect of private capital flows on economic growth.

Suggested Citation

  • Bouzayani RAJAB & Abida ZOUHEIR, 2024. "Complementarity between private capital flows and the development of regulatory institutions:Empirical evidence for North African countries," Romanian Journal of Economics, Institute of National Economy, vol. 59(2(68)), pages 192-205, December.
    • Handle: RePEc:ine:journl:v:59:y:2024:i:68:p:192-205
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    More about this item

    Keywords

    private capital flows; institutional development; economic growth; GMM;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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