245
Views
6
CrossRef citations to date
0
Altmetric
Articles

Governance and portfolio flows in Sub-Saharan Africa

&
 

ABSTRACT

This study investigates the relationship between the six World Governance Indicators and foreign portfolio investment in 33 Sub-Saharan African (SSA) countries over the years of 1998–2015. GMM analysis finds that portfolio inflows are most significantly attracted by the ability of SSA governments to implement policies effectively, strengthening the quality of institutions, and controlling corruption; but are deterred by the regions poor record of the rule of law and political stability.

JEL CLASSIFICATION:

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 The sample countries are listed in Appendix A1.

2 The unit root test results are summarised in Appendix B.

3 Missing observations have been interpolated using the linear spline interpolation method for the years of 1997, 1999, and 2001.

4 The revolving door phenomenon occurs when money flows both into and out of a country. During periods of capital flight money which does flow into the country tends to be repatriated shortly after investment.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.