African countries have accumulated substantial foreign currency reserves in recent years, mostly from higher commodity exports as well as aid flows. In the context of macroeconomic stabilization, which remains at the forefront of national economic policymaking and aid conditionality, African...

This study attempts to investigate the effects of cultural origin on the saving behaviour of immigrants in the United Arab Emirates (UAE). Using household survey data covering 3206 households, savings rates are found to be remarkably different across households from different countries/regions....

Does it matter for domestic investment whether a country’s financial system is bank based or stock-market based? This paper posits that financial intermediation affects domestic investment notably by alleviating financing constraints, allowing firms to increase investment in response to...

This study investigates the impact of corruption on public and private investment in African countries as a way of exploring one channel through which corruption undermines growth. The empirical results indicate that corruption affects economic growth directly and through its impact on...

This paper examines the question of whether inflation targeting monetary policy is an appropriate framework for sub-Saharan African countries. The paper presents an overview of inflation targeting, reviews the justification for the regime, and summarizes some major critiques. Monetary policy...

There is growing consensus on the view that corruption hurts economic performance by reducing private investment, by adversely affecting the quantity and quality of public infrastructure, by reducing tax revenue, and by reducing human capital accumulation. In addition to inefficiency effects –...

Limited access of entrepreneurs to credit constrains the creation and growth of private firms. In Africa, access to credit is particularly limited for small and medium enterprises (SMEs) due to unclear property rights and the lack of assets that can be used as collateral. This paper presents a...

This paper examines the role that institutions have played in the performance of African economies over the past decades. It discusses the institutional changes needed to enable African countries to reach inclusive development in the near future. The paper starts from the premise that growth and...

This paper examines the implications of capital flight and tax havens for economic development in African economies. Specifically, it investigates the impact of capital flight on domestic investment and the opportunity costs of capital flight in terms of forgone growth. First, econometric...

This paper examines the implications of capital flight and tax havens for economic development in African economies. Specifically, it investigates the impact of capital flight on domestic investment and the opportunity costs of capital flight in terms of foregone growth. First, econometric...