Dearth of private capital flows in Sub-Saharan Africa

Kausik Chaudhuri and D. K. Srivastava

Applied Economics Letters, 1999, vol. 6, issue 6, 365-368

Abstract: This paper offers an empirical investigation of dearth of private capital flows to Sub-Saharan Africa in a context where there is a surge in private capital flows to the rest of the developing countries. Using panel data on thirty Sub-Saharan African countries over the time period from 1986 to 1993, we find that the domestic fundamentals play a crucial role in explaining this phenomenon. Our findings also imply that these countries may begin to receive private inflows if they implement structural policy reforms which will strengthen domestic fundamentals.

Date: 1999
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DOI: 10.1080/135048599353096

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