Africa, Foreign Direct Investment

This paper considers the impact of the Euro in Sub-Saharan Africa, looking at the transmission channels through which the Euro could affect the economies in the region and at the risks and opportunities for Sub-Saharan African countries. In particular, the paper looks into effects from the trade channel through changes in the European economic activity and real exchange rate. Because of a relatively low-income elasticity with respect to primary commodities, which is what Sub-Saharan Africa primarily exports, any increase in activity in Europe is deemed to have an inferior impact on Africa.

Link: http://www.cepr.org/pubs/new-dps/dplist.asp?dpno=2304
Added by View user profileBrian Wilcox on October 30, 2006