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Trade Openness and Risk Sharing in Sub-Saharan Africa: Do Institutions and Financial Depth Matter?

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  • John Bosco Nnyanzi

    (Department of Economic Theory and Analysis, School of Economics, College of Business and Management Sciences, Makerere University, Kampala, Uganda)

Abstract

The study investigates the extent to which trade openness could determine consumption risk sharing. The findings from panel regressions on Sub-Saharan African countries suggest a significant contribution of trade integration in the allocation of consumption risk. Further results point to the importance of reducing corruption if countries are to unhinge domestic consumption from domestic production. Additionally, as countries achieve higher financial deepening, they could become independent from international financial reliance thereby enjoying less Consumption risk sharing. The study argues for policies to promote trade and fight corruption if the observed levels of risk sharing in Sub-Saharan Africa are to improve.

Suggested Citation

  • John Bosco Nnyanzi, 2016. "Trade Openness and Risk Sharing in Sub-Saharan Africa: Do Institutions and Financial Depth Matter?," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 16(1), pages 161-187, March.
    • Handle: RePEc:wsi:gejxxx:v:16:y:2016:i:01:n:gej-2015-0013
    DOI: 10.1515/GEJ-2015-0013
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    Cited by:

    1. John Bosco Nnyanzi & Susan Kavuma & John Sseruyange & Aisha Nanyiti, 2022. "The manufacturing output effects of infrastructure development, liberalization and governance: evidence from Sub-Saharan Africa," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 49(2), pages 369-400, June.

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