The Effect of Foreign Capital on Domestic Investment in Togo

Amadou, Akilou
October 2011
International Journal of Economics & Finance;Oct2011, Vol. 3 Issue 5, p223
Academic Journal
Theoretically, openness to foreign capital can stimulate domestic investment in developing countries' or harm their economies by raising the risks of fmancial crises. It's why in this paper, we have analyzed the impact of foreign capital on domestic investment in Togo over the period 1970-2008. The results we have obtained by using error correction models indicate that overall foreign capital affects positively and significantly domestic investment. It also appears that foreign direct investment (FDI) and loans are the main channels through which foreign capital has a positive impact on domestic investment in Togo. The impact of portfolio investment is negative, but not significant.


Related Articles

  • What Economic principles Should Policymakers in Other Countries Have Learned from the S&L Mess? Kane, Edward J. // Business Economics;Jan2003, Vol. 38 Issue 1, p21 

    Describes the U.S. savings and loan crisis and the financial crises in developing countries. Information on the accounting deception in the savings and loan crisis; Strategic elements that characterize public policies toward savings and loan; Details on the regulatory-gambling theory of...

  • DOES FOREIGN INVESTMENT WORSEN THE DOMESTIC STOCK MARKET DURING A FINANCIAL CRISIS? EVIDENCE FROM TAIWAN. Chun-Pin Hsu; Chin-Wen Huang; Ntoko, Alfred // International Journal of Business & Finance Research (IJBFR);2013, Vol. 7 Issue 4, p1 

    Foreign portfolio investment is a major means by which emerging stock markets accumulate capital. However, the high mobility of foreign funds is a concern for local investors and policymakers in emerging countries because it may induce high stock price volatility. In this study, we utilized a...

  • POUPANÇA EXTERNA, VULNERABILIDADE E CRISE CAMBIAL: OS CASOS DE MÉXICO, BRASIL E ARGENTINA. Alencar, Douglas Alcantara; Scarano, Paulo Rogério // Revista de Economia Mackenzie;2010, Vol. 8 Issue 2, p35 

    The aim of this work is to identify if there was some link between the use of foreign savings and the deterioration of indicators of external vulnerability in the period preceding the exchange crises in Mexico, Brazil, and Argentina, which occurred between 1994 and 2001. For that, one needs to...

  • The economics of latent demand in Togo.  // Togo Economic Studies;2000, p15 

    Provides an overview of the economic fundamentals within Togo that can be used by the business community to determine the country's strategic market and investment potential. Key industries and relevant factors affecting the economy; Sources of latent demand; A comparison of its key economic...

  • World Growth Slows As Advanced Economies Stumble.  // Business Today;5/4/2008, Vol. 17 Issue 9, p36 

    The article focuses on the projected slow of world growth in 2008. According to a latest report by the International Monetary Fund, world growth will slow to 3.7 percent as an effect to the financial crisis in the U.S. On the other hand, emerging countries are likely to withstand the outbreak...

  • PRZEPŁYWY BIZ I ZMIANY STRUKTURY AKUMULACJI KAPITAŁU A WZROST GOSPODARCZY W KRAJACH WSCHODZÄ„CYCH I ROZWIJAJÄ„CYCH SIĘ. Kosztowniak, Aneta // Research Papers of the Wroclaw University of Economics / Prace N;2012 Part 1, Issue 267, p295 

    The study outlines FDI flows, changes of FDI inflows as a percentage of gross fixed capital formation and Inward FDI Performance Index and Inward FDI Potential Index. In empirical analysis there were estimated influence of FDI flows on the changes of capital accumulation and economic growth in...

  • DOÄžRUDAN YABANCI SERMAYE HAREKETLERÄ°NÄ°N MAKROEKONOMÄ°K ETKÄ°LERÄ°. Çinko, Levent // Marmara University Journal of the Faculty of Economic & Administ;Jun2009, Vol. 26 Issue 1, p117 

    One of the fundamental problems of underdeveloped and developing countries is insufficiency of national savings. Deficiency of income per capita in these countries causes the tendency toward marginal savings to be low which, results in insufficient national savings. This situation increases the...

  • Roll Out the Red Carpet and They Will Come: Investment Promotion and FDI Inflows. Harding, Torfinn; Javorcik, Beata S. // Economic Journal;Dec2011, Vol. 121 Issue 557, p1445 

    This study uses newly collected data on 124 countries to examine the effects of investment promotion on inflows of US foreign direct investment (FDI). We test whether sectors explicitly targeted by investment promotion agencies in their efforts to attract FDI receive more investment in the...

  • Stimulus Package? Americans Need to Save. Rosta, Joseph // U.S. Banker;Mar2008, Vol. 118 Issue 3, p56 

    The article reports on the economic crisis in the U.S. It states that the government has allocated a total of $168 billion for its stimulus package, a payment given to eligible households and qualified taxpayers, which aims to address economic recession in the country. However, legislators...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics