271
Views
0
CrossRef citations to date
0
Altmetric
Research Articles

The effects of international financial inflows on economic complexity in Africa: does institutional quality play a moderation role?

, ORCID Icon, &
Pages 348-369 | Received 21 Oct 2022, Accepted 29 May 2023, Published online: 07 Jun 2023

References

  • Acemoglu, D., and J. A. Robinson. 2010. “Why is Africa Poor?” Economic History of Developing Regions 25 (1): 21–50. doi:10.1080/20780389.2010.505010.
  • Adeseye, A. 2021. “The Effect of Migrants Remittance on Economy Growth in Nigeria: An Empirical Study.” Open Journal of Political Science 11 (1): 99–122. doi:10.4236/ojps.2021.111007.
  • Adjei, M., Y. Bo, E. Nketiah, G. Adu-Gyamfi, and B. Obuobi. 2020. “The Effects of Remittances on Economic Growth in West Africa.” Journal of Human Resource and Sustainability Studies 8: 312–329. doi:10.4236/jhrss.2020.83018.
  • Afegbua, S. I., B. Nkomah, and M. O. Ozah. 2017. “Unending Reliance of African States on Foreign Aids: An Assessment.” International Journal of Operational Research in Management, Social Sciences and Education 3 (1): 91–110.
  • African Development Bank. 2020. “African Economic Outlook 2020: Africa’s economy forecast to grow despite external shocks.“ Abidjan: African Development Bank. Accessed 21 February 2023. https://www.afdb.org/en/news-and-events/press-releases/african-economic-outlook-2020-africas-economy-forecast-grow-despite-external-shocks-33839
  • Ajide, K. B. 2022. “Is Natural Resource Curse Thesis an Empirical Regularity for Economic Complexity in Africa?” Resources Policy 76: 102755. doi:10.1016/j.resourpol.2022.102755.
  • Alexiou, C., P. Tsaliki, and H. R. Osman. 2014. “Institutional Quality and Economic Growth: Empirical Evidence from the Sudanese Economy.” Economic Annals LIX (203): 119–137. doi:10.2298/EKA1403119A.
  • Anetor, F. O. 2019. “Remittance and Economic Growth Nexus in Nigeria: Does Financial Sector Development Play a Critical Role?” International Journal of Management, Economics and Social Sciences 8 (2): 116–135. doi:10.32327/IJMESS/8.2.2019.8.
  • Anthony-Orji, O. I., A. Orji, J. E. Ogbuabor, and E. O. Nwosu. 2019. “Do Financial Stability and Institutional Quality Have Impact on Financial Inclusion in Developing Economies? A New Evidence from Nigeria.” International Journal of Sustainable Economy 11 (1): 18–40. doi:10.1504/IJSE.2019.096541.
  • Antonietti, R., and C. Franco. 2021. “From FDI to Economic Complexity: A Panel Granger Causality Analysis.” Structural Change and Economic Dynamics 56: 225–239. doi:10.1016/j.strueco.2020.11.001.
  • Arellano, M., and S. Bond. 1991. “Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations.” The Review of Economic Studies 58 (2): 277–297. doi:10.2307/2297968.
  • Arellano, M., and O. Bover. 1995. “Another Look at the Instrumental Variable Estimation of Error-Components Models.” Journal of Econometrics 68 (1): 29–51. doi:10.1016/0304-4076(94)01642-D.
  • Balde, Y. 2011. “The Impact of Remittances and Foreign Aid on Savings/Investment in Sub Saharan Africa.” African Development Review 23 (2): 247–262. doi:10.1111/j.1467-8268.2011.00284.x.
  • Blundell, R., and S. Bond. 1998. “Initial Conditions and Moment Restrictions in Dynamic Panel Data Models.” Journal of Econometrics 87 (1): 115–143. doi:10.1016/S0304-4076(98)00009-8.
  • Bond, S. R. 2002. “Dynamic Panel Data Models: A Guide to Micro Data Methods and Practice.” Portuguese Economic Journal 1 (2): 141–162. doi:https://doi.org/10.1007/s10258-002-0009-9.
  • Canh, N. P., C. Schinckus, and S. D. Thanh. 2020. “The Natural Resources Rents: Is Economic Complexity a Solution for Resource Curse?” Resources Policy 69: 101800. doi:10.1016/j.resourpol.2020.101800.
  • Chowdhury, M. 2016. “Financial Development, Remittances and Economic Growth: Evidence Using a Dynamic Panel Estimation.” Margin: The Journal of Applied Economic Research 10 (1): 35–54. doi:10.1177/0973801015612666.
  • Dash, R. K. 2020. “Impact of Remittances on Domestic Investment: A Panel Study of Six South Asian Countries.” South Asia Economic Journal 21 (1): 7–30. doi:10.1177/1391561420903199.
  • De-Haas, H. 2005. “International Migration, Remittances and Development: Myths and Facts.” Third World Quarterly 26 (8): 1269–1284. doi:10.1080/01436590500336757.
  • Doğan, B., D. Balsalobre-Lorente, and M. A. Nasir. 2020. “European Commitment to COP21 and the Role of Energy Consumption, FDI, Trade and Economic Complexity in Sustaining Economic Growth.” Journal of Environmental Management 273: 111146. doi:10.1016/j.jenvman.2020.111146.
  • Ekeocha, D. O., J. E. Ogbuabor, and A. Orji. 2022. “Public Infrastructural Development and Economic Performance in Africa: A New Evidence from Panel Data Analysis.” Economic Change and Restructuring 55 (2): 931–950. doi:10.1007/s10644-021-09334-8.
  • Ekeocha, D. O., J. E. Ogbuabor, A. Orji, and U. I. Kalu. 2021. “International Tourism and Economic Growth in Africa: A Post-Global Financial Crisis Analysis.” Tourism Management Perspectives 40: 100896. doi:10.1016/j.tmp.2021.100896.
  • Ferdaous, J. 2016. “Impact of Remittances and FDI on Economic Growth: A Panel Data Analysis.” Journal of Business Studies Quarterly 8 (2): 58–77.
  • Folarin, O., and O. Adeniyi. 2019. “Does Tourism Reduce Poverty in Sub-Saharan African Countries?” Journal of Travel Research 59 (1): 140–155. doi:10.1177/0047287518821736.
  • Gabrielczak, P., and T. Serwach. 2020. “Does the Euro Increase the Complexity of Exported Goods? The Case of Estonia.” Journal of Baltic Studies 51 (1): 105–124. doi:10.1080/01629778.2019.1694551.
  • Gómez-Zaldívar, M., I. Llamosas-Rosas, and F. Gómez-Zaldívar. 2021. “The Relationship Between Economic Complexity and the Pattern of Foreign Direct Investment Flows Among Mexican States.” The Review of Regional Studies 51 (1): 64–88. doi:10.52324/001c.21211.
  • Hansen, L. P. 1982. “Large Sample Properties of Generalized Method of Moments Estimators.” Econometrica 50 (4): 1029–1054. doi:10.2307/1912775.
  • Hartmann, D., M. R. Guevara, C. Jara-Figueroa, M. Aristarán, and C. A. Hidalgo. 2017. “Linking Economic Complexity, Institutions, and Income Inequality.” World Development 93: 75–93. doi:10.1016/j.worlddev.2016.12.020.
  • Hassan, G. M., M. Chowdhury, and M. Bhuyan. 2016. “Growth Effects of Remittances in Bangladesh: Is There a U-Shaped Relationship?” International Migration 54 (5): 105–121. doi:10.1111/imig.12242.
  • Hausmann, R., J. Hwang, and D. Rodrik. 2007. “What You Export Matters.” Journal of Economic Growth 12 (1): 1–25. doi:10.1007/s10887-006-9009-4.
  • Hidalgo, C. A., and R. Hausmann. 2009. “The Building Blocks of Economic Complexity.” Proceedings of the National Academy of Sciences 106 (26): 10570–10575. doi:10.1073/pnas.0900943106.
  • Iheonu, C. O., G. I. Ihedimma, and M. C. Omenihu. 2017. “A Pooled Mean Group Estimation of Capital Inflow and Growth in Sub-Saharan Africa.” The Romanian Economic Journal 20 (65): 105–121. https://ideas.repec.org/a/rej/journl/v20yi65p105-121.html.
  • Ikpesu, F. 2019. “Growth Effects of Capital Inflows and Investment in Nigeria.” International Journal of Management, Economics and Social Sciences 8 (1): 5–19. doi:10.32327/IJMESS/8.1.2019.2.
  • Ilu, A. I. 2019. “Impact of Remittances from Nigerians in Diaspora on Exchange Rate Stability”. MPRA Paper No. 97555. Accessed 21 February 2023. https://mpra.ub.uni-muenchen.de/97555/
  • Isiaka, N. A., and W. A. Makinde. 2020. “Effect of Foreign Aids on Economic Growth in Nigeria.” Canadian Social Science 16 (10): 26–36. doi:10.3968/11897.
  • Issifu, I. 2018. “The Impact of Remittance on Domestic Investment: The Role of Financial and Institutional Development in Five Countries in Sub-Saharan Africa.” Forum of International Development Studies 48 (9): 1–20. doi:10.18999/forids.48.9.
  • Javorcik, B. S., A. L. Turco, and D. Maggioni. 2017. “New and Improved: Does FDI Boost Production Complexity in Host Countries?” The Economic Journal 128 (614): 2507–2537. doi:10.1111/ecoj.12530.
  • Kamguia, B., S. Tadadjeu, C. Miamo, and H. Njangang. 2022. “Does Foreign Aid Impede Economic Complexity in Developing Countries?” International Economics 169: 71–88. doi:10.1016/j.inteco.2021.10.004.
  • Khan, H., U. Khan, and M. A. Khan. 2020. “Causal Nexus Between Economic Complexity and FDI: Empirical Evidence from Time Series Analysis.” The Chinese Economy 53 (5): 374–394. doi:10.1080/10971475.2020.1730554.
  • Khan, M. K., J. Teng, and M. I. Khan. 2019. “The Effect of Migrant Remittances on Economic Growth: An ARDL Approach.” Engineering Economics 30 (4): 434–441. doi:10.5755/j01.ee.30.4.21830.
  • Li, Z., Y. Chu, and T. Gao. 2020. “Economic Growth with Endogenous Economic Institutions.” Macroeconomic Dynamics 24 (4): 920–934. doi:10.1017/S1365100518000536.
  • Liu, H., M. Alharthi, M. W. Zafar, M. S. Tahir, and M. M. Asghar. 2022. “Understanding the Role of Technology in Asian Economies: The Environmental Impact of Remittances and Economic Complexity.” Evaluation Review 0193841X2211204. doi:10.1177/0193841X221120483.
  • Mealy, P., and A. Teytelboym. 2022. “Economic Complexity and the Green Economy.” Research Policy 51 (8): 103948. doi:10.1016/j.respol.2020.103948.
  • Mlambo, C., and F. Kapingura. 2020. “Remittances and Economic Development: Evidence from SADC Countries.” Eurasian Journal of Economics and Finance 8 (4): 261–273. doi:10.15604/ejef.2020.08.04.006.
  • Nguea, S. M., and H. K. Fotio. 2021. “Does Globalization Enhances Product Sophistication.” Accessed 21 February 2023. 10.2139/ssrn.3997981.
  • Nguyen, H. H. 2020. “Impact of Foreign Direct Investment and International Trade on Economic Growth: Empirical Study in Vietnam.” The Journal of Asian Finance, Economics & Business 7 (3): 323–331. doi:10.13106/jafeb.2020.vol7.no3.323.
  • Njangang, H., S. Asongu, S. Tadadjeu, and Y. Nounamo. 2021. “Is Financial Development Shaping or Shaking Economic Sophistication in African Countries?” European Xtramile Centre of African Studies WP/21/018. doi:10.2139/ssrn.3806772.
  • North, D. C. 1990. Institutions, Institutional Change, and Economic Performance. England: Cambridge University Press.
  • Ogbonna, O. E., J. E. Ogbuabor, C. O. Manasseh, and D. O. Ekeocha. 2022. “Global Uncertainty, Economic Governance Institutions and Foreign Direct Investment Inflow in Africa.” Economic Change and Restructuring 55 (4): 2111–2136. doi:https://doi.org/10.1007/s10644-021-09378-w.
  • Ogbuabor, J. E., O. I. Anthony-Orji, O. E. Ogbonna, and A. Orji. 2019. “Regional Integration and Growth: New Empirical Evidence from WAEMU.” Progress in Development Studies 19 (2): 123–143. doi:10.1177/1464993418822883.
  • Ogbuabor, J. E., A. Orji, C. O. Manasseh, and O. I. Anthony-Orji. 2020. “Institutional Quality and Growth in West Africa: What Happened After the Great Recession?” International Advances in Economic Research 26 (4): 343–361. doi:10.1007/s11294-020-09805-0.
  • Olayungbo, D. O., and A. Quadri. 2019. “Remittances, Financial Development and Economic Growth in Sub-Saharan African Countries: Evidence from a PMG-ARDL Approach.” Financial Innovation 5 (1). doi:https://doi.org/10.1186/s40854-019-0122-8.
  • Ozsoy, S., B. Fazlioglu, and S. Esen. 2021. “Do FDI and Patents Drive Sophistication of Exports? A Panel Data Approach.” Prague Economic Papers 30 (2): 216–244. doi:10.18267/j.pep.755.
  • Qamruzzaman, M. D., and W. E. I. Jianguo. 2020. “Nexus Between Remittance and Household Consumption: Fresh Evidence from Symmetric or Asymmetric Investigation.” Journal of Economic Development 45 (3): 1–27. doi:10.35866/caujed.2020.45.3.001.
  • Rafei, M., P. Esmaeili, and D. Balsalobre-Lorente. 2022. “A Step Towards Environmental Mitigation: How Do Economic Complexity and Natural Resources Matter? Focusing on Different Institutional Quality Level Countries.” Resources Policy 78: 102848. doi:10.1016/j.resourpol.2022.102848.
  • Ranjbar, O., and F. Rassekh. 2022. “Does Economic Complexity Influence the Efficacy of Foreign Direct Investment? An Empirical Inquiry.” The Journal of International Trade & Economic Development 31 (6): 894–910. doi:10.1080/09638199.2022.2036792.
  • Romer, P. M. 1990. “Endogenous Technical Change.” Journal of Political Economy 98 (5): 71–102. doi:10.1086/261725.
  • Saadi, M. 2020. “Remittance Inflows and Export Complexity: New Evidence from Developing and Emerging Countries.” The Journal of Development Studies 56 (12): 2266–2292. doi:10.1080/00220388.2020.1755653.
  • Sadeghi, P., H. Shahrestani, K. H. Kiani, and T. Torabi. 2020. “Economic Complexity, Human Capital, and FDI Attraction: A Cross Country Analysis.” International Economics 164: 168–182. doi:10.1016/j.inteco.2020.08.005.
  • Shahzad, U., Z. Fareed, F. Shahzad, and K. Shahzad. 2021. “Investigating the Nexus Between Economic Complexity, Energy Consumption and Ecological Footprint for the United States: New Insights from Quantile Methods.” Journal of Cleaner Production 279: 123806. doi:10.1016/j.jclepro.2020.123806.
  • Sweet, C., and D. Eterovic. 2019. “Do Patent Rights Matter? 40 Years of Innovation, Complexity and Productivity.” World Development 115: 78–93. doi:10.1016/j.worlddev.2018.10.009.
  • UNCTAD. 2020. “Economic Development in Africa Report 2019: Made in Africa – Rules of Origin for Enhanced Intra-African Trade.“ Accessed 21 February 2023. https://unctad.org/system/files/official-document/edar2019_en_ch5.pdf.
  • Vu, T. V. 2022. “Does Institutional Quality Foster Economic Complexity? The Fundamental Drivers of Productive Capabilities.” Empirical Economics 63 (3): 1571–1604. doi:https://doi.org/10.1007/s00181-021-02175-4.
  • Wandeda, D. O., W. Masai, and S. M. Nyandemo. 2021. “Institutional Quality and Economic Growth: Evidence from Sub-Saharan Africa Countries.” African Journal of Economic Review 9 (4): 106–125.
  • Wang, Z., M. Ben Jebli, M. Madaleno, B. Doğan, and U. Shahzad. 2021. “Does Export Product Quality and Renewable Energy Induce Carbon Dioxide Emissions: Evidence from Leading Complex and Renewable Energy Economies.” Renewable Energy 171 (19): 360–370. doi:10.1016/j.renene.2021.02.066.
  • Wiredu, J., E. Nketiah, and M. Adjei. 2020. “The Relationship Between Trade Openness, Foreign Direct Investment and Economic Growth in West Africa: Static Panel Data Model.” Journal of Human Resource and Sustainability Studies 8 (01): 18–34. doi:https://doi.org/10.4236/jhrss.2020.81002.
  • World Bank. 2019. “Global Economic Prospects, January 2019: Darkening Skies.“ Washington, DC: World Bank. Accessed 21 February 2023. https://openknowledge.worldbank.org/handle/10986/31066
  • World Bank. 2020. “World Bank Predicts Sharpest Decline of Remittances in Recent History.“ Washington, DC: World Bank. Accessed 21 February 2023. https://www.worldbank.org/en/news/press-release/2020/04/22/world-bank-predicts-sharpest-decline-of-remittances-in-recent-history
  • World Bank. 2022. “World development indicators online database.“ Washington, DC: World Bank. Accessed 21 February 2023. http://data.worldbank.org/indicator.
  • Yalta, A. Y., and T. Yalta. 2021. “Determinants of Economic Complexity in MENA Countries.” JOEEP: Journal of Emerging Economies and Policy 6 (1): 5–16.
  • Yiew, T. H., and E. Lau. 2018. “Does Foreign Aid Contribute to or Impeded Economic Growth?” Journal of International Studies 11 (3): 21–30. doi:10.14254/2071-8330.2018/11-3/2.
  • Younsi, M., M. Bechtini, and H. Khemili. 2021. “The Effects of Foreign Aid, Foreign Direct Investment and Domestic Investment on Economic Growth in African Countries: Nonlinearities and Complementarities.” African Development Review 33 (1): 55–66. doi:10.1111/1467-8268.12490.
  • Zhu, S., and R. Li. 2017. “Economic Complexity, Human Capital and Economic Growth: Empirical Research Based on Cross-Country Panel Data.” Applied Economics 49 (38): 3815–3828. doi:10.1080/00036846.2016.1270413.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.