## Sub-Saharan Africa's Integration in the Global Financial Markets

_IMF Working Papers, May 1, 2009_

## Source details

**Canonical URL:** [Sub-Saharan Africa's Integration in the Global Financial Markets](https://www.imf.org/en/publications/wp/issues/2016/12/31/sub-saharan-africa-s-integration-in-the-global-financial-markets-22978)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/31/sub-saharan-africa-s-integration-in-the-global-financial-markets-22978/index.md)
- [Structured JSON version](/en/publications/wp/issues/2016/12/31/sub-saharan-africa-s-integration-in-the-global-financial-markets-22978/index.json)
- [Bundle manifest](/en/publications/wp/issues/2016/12/31/sub-saharan-africa-s-integration-in-the-global-financial-markets-22978/bundle-manifest.json)

## Bibliographic details
- Authors: Corinne C Delechat, John Wakeman-Linn, Smita Wagh, Gustavo Ramirez
- Published: May 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451872613.001

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### Summary
- Paper uses a unique database covering 44 countries in sub-Saharan Africa (SSA) between 2000 and 2007 to study:
  - determinants of the allocation and composition of flows across countries, and
  - channels through which private capital flows could affect growth.
- In the sample, "the degree of financial market development is an important determinant of the distribution of capital flows across countries as opposed to property rights institutions."
- The paper finds a "fairly consistent positive association between net capital flows and growth for SSA countries" but notes the data do not allow conclusive inferences about a causality relationship.

### Key findings and observations
- Coverage and period:
  - 44 countries in sub-Saharan Africa.
  - Period: between 2000 and 2007.
- Determinants of capital flow allocation:
  - Financial market development: identified as an important determinant of distribution of capital flows across countries.
  - Property rights institutions: found to be less important than financial market development for distribution of capital flows in the sample.
- Relationship between flows and growth:
  - Net capital flows show a fairly consistent positive association with growth for SSA countries in the sample.
  - Causality between net capital flows and growth cannot be conclusively inferred from the data.

### Policy implications and research considerations
- Emphasis for policymakers and researchers:
  - Financial market development appears central for attracting and allocating private capital flows across SSA countries.
  - Strengthening financial market infrastructure and depth could influence the composition and distribution of capital inflows.
- Caution in interpretation:
  - Positive association between net capital flows and growth does not establish causality given data limitations; further research with causal identification is implied.

*IMF Working Paper by Corinne C Delechat, John Wakeman-Linn, Smita Wagh, and Gustavo Ramirez; May 1, 2009.*

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## Content in this bundle

- **1. Private Capital Flows Volatility**
  - [1. Private Capital Flows Volatility (Markdown version)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09114.pdf.md){rel="alternate" type="text/markdown"}
  - [1. Private Capital Flows Volatility (PDF)](/-/media/websites/imf/imported-full-text-pdf/external/pubs/ft/wp/2009/_wp09114.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/31/sub-saharan-africa-s-integration-in-the-global-financial-markets-22978_