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L'esprit du capitalisme capital étranger et développement
[The spirit of capitalism foreign capital and economic development]

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  • Jellal, Mohamed

Abstract

We consider a model of open economy with a culture of spirit of capitalism. As a first step, we show that the entry of foreign capital flows can support an endogenous economic growth of the host country. Further, our model shows a positive correlation between the entry of foreign direct investment and economic growth. The entry of foreign capital depends on both the quality of institutions as the quality of education and national culture of the host country. In particular, we show that the countries with strong culture of wealth accumulation attract more foreign investments that accelerated the pace of economic growth leading to a self sustaining virtuous circle. Our theoretical model can explain the miracle of the economic success of some Asian countries

Suggested Citation

  • Jellal, Mohamed, 2014. "L'esprit du capitalisme capital étranger et développement [The spirit of capitalism foreign capital and economic development]," MPRA Paper 57777, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57777
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    The Spirit of Capitalism ; Wealth Accumulation; Open Economy; Foreign Capital; Endogenous Growth; Asian Countries;
    All these keywords.

    JEL classification:

    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F63 - International Economics - - Economic Impacts of Globalization - - - Economic Development
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Z1 - Other Special Topics - - Cultural Economics
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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