The Determinants of International Capital Flows and Implications for Pro-Poor Growth in Sub-Saharan Africa. Final Report.
The project was intended to assess what determines the volume and composition of foreign capital inflows received by developing, especially sub-Saharan African, countries. It was to address the impact of changes in the composition of capital inflows on growth, and the implications this may have on strategies to reduce poverty.
Three phases of the research have been completed and written. The first shows that volatility of capital inflows (FDI) have an adverse effect on growth. The second quantifies trends in inflows and volatility of various capital flows to developing countries. The third addresses the implications of increasing, and increasingly volatile, private capital inflows for macroeconomic policy management in sub-Saharan Africa. Econometric analysis of determinants of capital inflows and the impact on growth has been conducted but the discussion papers have not yet been completed.