L'esprit du capitalisme capital étranger et développement

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