Perceived Financial Risk and the Economic Growth of sub-Saharan African Countries - Rischio finanziario percepito e divergenza nella crescita economica dei paesi dell’Africa sub-sahariana

Bichaka Fayissa, Christian Nsiah and Prathibha V. Joshi ()
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Prathibha V. Joshi: Business And Social Science - Gordon College, Postal: 419 College Drive - Barnesville, GA 30204 U.S.A., http://www.gdn.edu/

Economia Internazionale / International Economics, 2010, vol. 63, issue 2, 179-192

Abstract: Since the 1970’s, countries of the sub-Saharan African region have experienced slow economic growth and development in comparison to other regions of the world. This paper studies the role of perceived financial risk in explaining the anemic economic growth among sub-Saharan African countries by employing regression techniques on panel data for the period of 1984 to 2000. Our findings suggest that higher ratings of a country’s investment environment (used as a proxy for reduced perceived financial risk) tend to make the flow of external funds more accessible to African countries and spur their economic growth.- Negli anni ’70 la crescita economica e lo sviluppo dei paesi dell’area subsahariana sono stati inferiori rispetto al resto del mondo. Tramite applicazioni di regressioni panel data per il periodo 1984-2000, questo studio analizza il ruolo che il rischio finanziario percepito può aver giocato ai fini della divergenza della crescita economica dei paesi dell’Africa sub-sahariana. I risultati suggeriscono che rating più alti attribuiti all’investment environment (utilizzati come indicatori di un minor rischio finanziario percepito) tendono a rendere più accessibili i finanziamenti stranieri ai paesi africani in questione, stimolandone la crescita economica.

Keywords: Economic Growth; Financial Risk; Foreign Direct Investment; Human Capital; Physical Capital; Political Rights; Openness; Panel Data (search for similar items in EconPapers)
JEL-codes: C33 F20 G32 O40 O50 (search for similar items in EconPapers)
Date: 2010
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