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...

This paper attempts to clarify theoretically the link between remittances , industrialization by foreign capital as well as the size of its volatility. In particular, the model shows clearly that if the flows of foreign capital induce volatility in the economy, the bulk of remittances from the...

This paper aims to model theoretically the fundamental links between financial development, foreign direct investment and economic development. In particular, we show that the entry of foreign capital flows can support an endogenous economic growth path of the host country. Indeed, we give the...