AFRICAN ECONOMIES PROJECT

Léonce Ndikumana, Project Director

The African Economies Project analyzes the causes of poor economic performance in the countries of sub-Saharan Africa, and explores policies that can enhance economic performance and raise the living standards of the populations in the sub-continent. The research has three components:

• Financial systems, investment, and growth
  This component examines the role of financial systems in enhancing domestic investment and long-run growth in African economies. So far the project has examined two related but distinct aspects of this question. First, does the ex ante development of financial markets facilitate ex post investment of firms? Second, does the structure of the financial system (stock-market-based vs. bank-based) affect the linkages between finance and firm-level investment?

• Capital flows, capital account regimes, and economic performance
  This component explores the causes and consequences of capital flight in African economies, and investigates the impact of capital account regimes and exchange rate regimes on domestic investment, financial stability, and the variability of output. The research includes case studies, cross-country comparisons among African economies, and comparisons between African countries and other developing countries.

• The economics and politics of conflicts in Africa
  This component investigates the role of economic and institutional factors in causing conflict, and examines the strategies that can facilitate post-conflict reconstruction and reduce the risk of future conflicts. The research also explores the impact of politics on the risk of conflict, the effects of conflict on economic performance, and the interface between economics and peace-building.