Productivity-Enhancing Reforms, Private Capital Inflows, and Real Interest Rates in Africa

Manoj Atolia ()

No wp2003_10_02, Working Papers from Department of Economics, Florida State University

Abstract: The rise in economic growth in some countries of Africa over past two decades, powered mainly by productivity boom, has been associated with large private capital in.ows despite poor integration of the African countries with the world capital markets. While these countries lack access to world capital markets, they are nonetheless highly dollarized and allowing for this fact can explain large private capital in.ows and other stylized macroeconomic facts associated with the productivity-enhancing reforms in Africa. With a number of African economies poised to reap gains in productivity, as they return to stable and sound political and economic environment, the paper suggests the framework that can be used to understand the macroeconomic implications of and suggest appropriate policy responses to such gains in productivity.

Keywords: Africa; currency substitution; productivity-enhancing reforms; capital flows; inflation; overshooting; real interest rate (search for similar items in EconPapers)
JEL-codes: F32 F41 O55 (search for similar items in EconPapers)
Pages: 42
Date: 2003-10, Revised 2008-12
New Economics Papers: this item is included in nep-afr, nep-dev, nep-fmk, nep-ifn and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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