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The global financial crisis and sub-saharan Africa: the effects of slowing private capital inflows on growth

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Written by Isabella Massa

This paper explores the effects of the global financial crisis on sub-Saharan Africa. Research to examines the relationship between economic growth and four different types of private capital inflows:

  • cross-border bank lending;
  • foreign direct investment (FDI);
  • bonds flows; and
  • portfolio equity flows.
Our results show that FDI and cross-border bank lending exert a significant and positive impact on sub-Saharan Africa's growth, whereas portfolio equity flows and bonds flows have no growth impact.
José Brambila-Macias and Isabella Massa