| Description |
1 online resource (38 pages) : color illustrations |
| Series |
IMF working paper ; WP/14/94 |
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IMF working paper ; WP/14/94.
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| Contents |
Cover; Abstract; Contents; I. Introduction; Figures; 1. SSA Composite Financial Development Index; II. Openness and Financial Development-An Overview of the Literature; III. The Data; 2. Financial Sector Development Indices for Selected Regions; 3. Private Credit to GDP; 4. Financial Reform Index; IV. Modeling Approach; 5. Sub-Saharan Africa: Scatter Plots of the Relationships between Financial Development and Measures of Openness; V. Empirical Results; Tables; 1. Estimation Results for Variables in Levels; 2. Estimation Results for Variables in First Differences |
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3. Estimation Results over Period 1982-19954. Estimation Results Including Financial Reforms; 6. Country-specific Coefficients, Institutional Quality and Development Indicators (Levels); 7. Country-specific Coefficients and Institutional Quality (First Differences); VI. Concluding Remarks; 5. Robustness Checks: Additional Regressors; Annexes; Annex A: List of Countries Included in the Regressions; Annex B: Variables Definitions and Sources; Annex C: Descriptive Statistics for Selected Variables; Annex D: Panel Unit Root Tests; Annex E: Robustness Checks: Chinn-Ito (2006) regressions |
| Summary |
"This paper analyzes the links between financial and trade openness and financial development in Sub-Saharan African (SSA) countries. It is based on a panel dataset using methods that tackle slope heterogeneity, cross-sectional dependence and non-stationarity, important econometric problems that are often ignored in the literature. The results do not point to a general direct robust link between trade and capital account openness and financial development in SSA, once we control for other factors such as GDP per capita and inflation. But there is some indication that trade openness is more important for financial development in countries with better institutional quality. The findings might be due to a number of factors including distortions in domestic financial markets, relatively weak institutions and/or poor financial sector supervision. Thus, African policy makers should be cautious about expectations regarding immediate gains for financial development from greater international integration. Such gains are more likely to occur through indirect channels"--Abstract |
| Notes |
"African Department"--Page 2 of pdf |
|
"June 2014"--Page 2 of pdf |
| Bibliography |
Includes bibliographical references |
| Notes |
Online resource; title from pdf title page (IMF.org Web site, viewed June 16, 2014) |
| Subject |
Financial institutions -- Africa, Sub-Saharan
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Finance -- Africa, Sub-Saharan
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Free trade -- Africa, Sub-Saharan
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International finance.
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International economic integration
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Finance
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Financial institutions
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Free trade
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International economic integration
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International finance
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Sub-Saharan Africa
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| Form |
Electronic book
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| Author |
Mlachila, Montfort, author
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Moheeput, Ashwin, author
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International Monetary Fund. African Department, issuing body.
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| ISBN |
9781498332804 |
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1498332803 |
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