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Cross-border bank lending versus foreign direct investment (FDI) in Africa’s growth story

Research reports

Written by Isabella Massa

For most of the large African economies that have undertaken financial sector reforms since the early 1980s, the two main types of private capital inflows are FDI and cross-border bank lending. This paper seeks to investigate the relative long run impact of each of these inflows on economic growth in African countries.

  • Cross-border bank lending versus FDI in Africa’s growth story

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José Brambila Macias, Isabella Massa and Victor Murinde