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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

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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.

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  • Fayissa, Bichaka & Nsiah, Christian & Joshi, Prathibha V., 2010. "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," Economia Internazionale / International Economics, Camera di Commercio Industria Artigianato Agricoltura di Genova, vol. 63(2), pages 179-192.
  • Handle: RePEc:ris:ecoint:0593
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    More about this item

    Keywords

    Economic Growth; Financial Risk; Foreign Direct Investment; Human Capital; Physical Capital; Political Rights; Openness; Panel Data;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F20 - International Economics - - International Factor Movements and International Business - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O50 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - General

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