Financing Development Without Tears: An Empirical Investigation on Sub-saharan Africa

Abstract

We examined both traditional and ‘innovative’ sources of financing development in SSA. The panel results for 36 SSA countries showed mixed results. While revenues, savings and remittances had a positive relationship with growth and per capita income, inflation, governance and external debt indicated negative relationship with growth. It is apparent that SSA economies must improve on governance and strive to mobilize domestic resources such as savings, tax revenues and private–public partnership arrangements to finance development.