Publication

This paper uses a panel co-integration analysis to examine the long-run relationship between economic growth and four different types of private capital inflows on a sample of selected sub-Saharan African countries over the period 1980-2007. The authors argue that FDI and cross-border bank lending exert a significant and positive impact on sub-Saharan Africa’s growth, whereas portfolio equity flows and bonds flows have no growth impact. They conclude that the global financial crisis is likely to have an important effect on sub-Saharan Africa’s growth through the private capital inflows channel.