IDEAS home Printed from https://ideas.repec.org/p/ags/cudawp/127057.html
   My bibliography  Save this paper

Capital Flows to Africa: An Analysis of the Structure of Official and Private Capital Flows

Author

Listed:
  • Mhlanga, Nomathemba
  • Christy, Ralph D.

Abstract

Although globalization was built on increased world trade, the movement of capital has accelerated faster in the past two decades. It is this free flow of capital that is offering African countries renewed hope of tapping global markets for the much needed resources to aid their economic growth while becoming fully integrated into the global economy. While past studies tackling external resource flows to Africa have focused on either official or private capital flows, this paper analyses both types of capital flows with the intention of providing a clearer picture on composition and magnitude of external resources to Africa. Three types of capital flows – Official Development Assistance (ODA), Foreign Direct Investment (FDI) and Workers Remittances – emerge as key to tackling Africa’s development problems. Together, these flows account for the bulk of resources to Africa. In addition, they have built-in advantages for economic development hence are more suited to addressing Africa’s growth challenges. To this end, African countries must enact policies that directly relate to aiding effectiveness of these flows.

Suggested Citation

  • Mhlanga, Nomathemba & Christy, Ralph D., 2006. "Capital Flows to Africa: An Analysis of the Structure of Official and Private Capital Flows," Working Papers 127057, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudawp:127057
    DOI: 10.22004/ag.econ.127057
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/127057/files/Cornell_Dyson_wp0619.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.127057?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dave Weatherspoon & Joyce Cacho & Ralph Christy, 2004. "Linking Globalization, Economic Growth and Poverty: Impacts of Agribusiness Strategies on Sub-Saharan Africa," World Scientific Book Chapters, in: Ralph D Christy (ed.), Achieving Sustainable Communities In A Global Economy Alternative Private Strategies and Public Policies, chapter 2, pages 27-42, World Scientific Publishing Co. Pte. Ltd..
    2. White, Howard, 2004. "Trends in the volume and allocation of official flows from donor countries," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 233-244.
    3. Ali, A A G & Malwanda, C & Suliman, Y, 1999. "Official Development Assistance to Africa: An Overview," Journal of African Economies, Centre for the Study of African Economies, vol. 8(4), pages 504-527, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Edem Kwame Mensah Klobodu & Samuel Adams, 2016. "Capital Flows and Economic Growth in Ghana," Journal of African Business, Taylor & Francis Journals, vol. 17(3), pages 291-307, September.
    2. Oluwatosin Olatunji Ogunyomi-Oluyomi & Adeyemi Olayiwola Babasanya & Isiaq Olasunkanmi Oseni, 2023. "Interactive Effect Of Foreign Direct Investment (Fdi) Inflow And Absorptive Capacity On Economic Growth In The African Countries," Business & Management Compass, University of Economics Varna, issue 4, pages 267-285.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Phuong-Tra Vu & Phung Bao Ngoc Van, 2021. "National culture and the distribution of foreign aid," Economics and Business Letters, Oviedo University Press, vol. 10(4), pages 359-368.
    2. Federica Di Marcantonio & Pavel Ciaian & Vicente Castellanos, 2018. "Unfair trading practices in the dairy farm sector: Evidence from selected EU regions," JRC Research Reports JRC112770, Joint Research Centre.
    3. Tao Xiang & Jikun Huang & d’Artis Kancs & Scott Rozelle & Jo Swinnen, 2012. "Food Standards and Welfare: General Equilibrium Effects," Journal of Agricultural Economics, Wiley Blackwell, vol. 63(2), pages 223-244, June.
    4. Mungandi, Sepiso & Conforte, Daniel & Shadbolt, Nicola M., 2012. "Integration of Smallholders in Modern Agri-food Chains: Lessons from the KASCOL Model in Zambia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 15(3), pages 1-22, September.
    5. Dave Weatherspoon & Joyce Cacho & Ralph Christy, 2004. "Linking Globalization, Economic Growth and Poverty: Impacts of Agribusiness Strategies on Sub-Saharan Africa," World Scientific Book Chapters, in: Ralph D Christy (ed.), Achieving Sustainable Communities In A Global Economy Alternative Private Strategies and Public Policies, chapter 2, pages 27-42, World Scientific Publishing Co. Pte. Ltd..
    6. Hoeffler, Anke & Sterck, Olivier, 2022. "Is Chinese aid different?," World Development, Elsevier, vol. 156(C).
    7. repec:lic:licosd:24609 is not listed on IDEAS
    8. Swinnen, Johan F.M. & Rozelle, Scott & Xiang, Tao & Vandemoortele, Thijs, 2009. "A Theory of Standards-Driven Rural Development," 2009 Conference, August 16-22, 2009, Beijing, China 51475, International Association of Agricultural Economists.
    9. repec:lic:licosd:19908 is not listed on IDEAS
    10. Sicelo Ignatius Dlamini & Wen-Chi Huang, 2020. "Towards Intensive Co-operated Agribusiness: A Gender-Based Comparative Borich Needs Assessment Model Analysis of Beef Cattle Farmers in Eswatini," Agriculture, MDPI, vol. 10(4), pages 1-17, April.
    11. Bart Minten, 2008. "The Food Retail Revolution in Poor Countries: Is It Coming or Is It Over?," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 767-789, July.
    12. Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
    13. Nour, Samia Satti Osman Mohamed, 2011. "Assessment of effectiveness of Chinese aid in financing development in Sudan," MERIT Working Papers 2011-005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    14. Jan Fałkowski & Agata Malak-Rawlikowska & Dominika Milczarek-Andrzejewska, 2013. "Determinants and Consequences of Participating in a Restructured Supply Chain: the Experience of the Dairy Sector in Poland," Ekonomia journal, Faculty of Economic Sciences, University of Warsaw, vol. 34.
    15. George Mavrotas & Espen Villanger, 2006. "Multilateral Aid Agencies and Strategic Donor Behaviour," WIDER Working Paper Series DP2006-02, World Institute for Development Economic Research (UNU-WIDER).
    16. Mete FERIDUN & Janet O. OLUSI & Benjamin Ayodele FOLORUNSO, 2006. "Analyzing The Impact Of Globalization On Economic Development In Developing Economies: An Application Of Error Correction Modelling (Ecm)To Nigeria," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 6(3).
    17. Van Herck, Kristine, 2011. "Where have all the farmers gone? EU Accession and Structural Change in Bulgaria," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114829, European Association of Agricultural Economists.
    18. Beletskaya, M., 2019. "Bilateral International Assistance: Factors for Donor Countries," Journal of the New Economic Association, New Economic Association, vol. 43(3), pages 95-114.
    19. Jan Falkowski & Pavel Ciaian, 2016. "Factors Supporting the Development of Producer Organizations and their Impacts in the Light of Ongoing Changes in Food Supply Chains: A Literature Review," JRC Research Reports JRC101617, Joint Research Centre.
    20. Alessia Isopi & George Mavrotas, 2006. "Aid Allocation and Aid Effectiveness: An Empirical Analysis," WIDER Working Paper Series RP2006-07, World Institute for Development Economic Research (UNU-WIDER).
    21. Magda Kandil & Muhammad Shahbaz & Mantu Kumar Mahalik & Duc Khuong Nguyen, 2017. "The drivers of economic growth in China and India: globalization or financial development?," International Journal of Development Issues, Emerald Group Publishing Limited, vol. 16(1), pages 54-84, April.
    22. Minten, Bart, 2007. "The food retail revolution in poor countries: Is it coming or is it over? Evidence from Madagascar," IFPRI discussion papers 719, International Food Policy Research Institute (IFPRI).

    More about this item

    Keywords

    Agricultural Finance;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cudawp:127057. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/dacorus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.