Finance and trade in Africa : macroeconomic response in the world economy context / Alemayehu Geda.

Includes bibliographical references (pages 380-413) and index.

Machine generated contents note: 1 Introduction -- 1.1 Introduction and Overview -- 1.2 Background to African Debt and Macro Policy Debates -- 1.2.1 Background to African Debt -- 1.2.2 Africa's Economic Crisis: What Caused It? -- 1.3 The Historical Origin of Africa's Economic Linkage with the North -- 1.3.1 Pre-colonial Trade in Africa -- 1.3.2 The Formation of a Commodity-exporting and External Finance-constrained Economy -- 1.3.3 The Three Macro Regions of Colonial Africa: The Amin-Nzula Category -- 1.4 Some Notes on Methodology -- 1.5 Organization of the Book -- 2 Trade, Finance and Development in a -- Global Context -- 2.1 Introduction -- 2.2 Finance Theories, North-South Modelling and the African Context -- 2.2.1 Foreign Direct Investment -- 2.2.2 Theories of Bank Lending and Optimal Borrowing -- 2.2.3 Models of Sovereign Lending and the Institutional Response -- 2.2.4 Official Capital Flows -- 2.2.5 Conclusion -- 2.3 International Trade Theories and their Relevance in Modelling Africa -- 2.3.1 A Brief Overview of Trade Theories and their Implications for Africa -- 2.32 Non-orthodoK Modek and Trade in Primary Commodities -- 2.3.3 Quantitative Models of Trade in Primary Commodities -- 2.4 Conclusion -- 3 The Macroeconomics of Africa: -- Import Compression and External Finance -- 3.1 Introduction -- 3.2 A Cursory Look at Some Macro Models of Africa -- 3.3 Some Basic Issues in African Macroeconomics -- 3.3.1 Import Compression -- 3.3.2 Macroeconomic Effects of External Finance -- 3.3.3 The Accounting Framework: An Overview -- 3.4 Conclusion -- 4 Determinants of Foreign Exchange Supply -- 4.1 Introduction -- 4.2 Determinants of Financial Flows to Africa: -- Econometric Results -- 4.2.1 Determinants of Allocation of FDI to Africa -- 4.2.2 Determinants of Allocation of Official Capital Flows to Africa -- 4.3 Determinants of African Export Supply -- 4.3.1 Introduction -- 4.3.2 The Literature -- 4.3.3 The Data -- 4.3.4 Estimation -- 4.3.5 Summing up -- 4.4 African Exports in a Global Context -- 4.4.1 Introduction -- 4.4.2 The Global Commodity Model -- 4.4.3 Estimation of the Model -- 4.4.4 Locating African Commodity Trade in the Global Market -- 4.5 Conclusion -- 5 External Finance and the African Economy: -- A Macro Approach -- 5.1 Introduction -- 5.2 The Fiscal Response to External Finance -- 5.2.1 Introduction -- 5.2.2 The Model -- 5.2.3 Estimation Results -- 5.2.4 Summing Up -- 5.3 Aid and the 'Dutch Disease' in Africa -- 5.3.1 Aid and the 'Dutch Disease': An Overview -- 5.3.2 Aid, the 'Dutch Disease' and the African Context -- 5.3.3 Estimation Results -- 5.3.4 Summing Up -- 5.4 Private Investment and Import Compressiorn Econometric Results -- 5.5 Conclusion -- 6 Modelling Africa Within a Global Economic Framework -- 6.1 Introduction -- 6.2 Basic Theoretical Models -- 6.2.1 The Mundell-Fleming Model -- 6.2.2 The Theoretical Basis of Recent North-South Models -- 6.3 Standard North-South Linkages -- 6.3.1 Financial Linkages -- 6.3.2 Trade Linkages -- 6.4 Summing Up -- 6.5 Africa within a North-South Framework: A Neostructuralist Global Econometric Model (AFRIMOD) -- 6.5.1 The North -- 6.5.2 The South: Africa -- 6.5.3 Major Oil Exporting Countries (OPEC) -- 6.5.4 International Banking -- 6.5.5 Identities Used -- 6.5.6 Some Partial Equilibrium-based Analytical Solutions -- 6.5.7 Parameters of the Model -- Glossary of symbols used -- 7 The Effect on Africa of External Shocks Generated in Developed Countries -- 7.1 Introduction -- 7.2 World Accounting Matrices (WAM) as Database for AFRIMOD -- 7.3 Model Solution Algorithm and Stability Conditions -- 7.3.1 Model Solution -- 7.3.2 Stability Conditions -- 7.4 Analysis of External Shocks and Policy Simulations Using AFRIMOD -- 7.4.1 An Increase in the Level of Aid to the South -- 7.4.2 Debt Cancellation to Africa -- 7.4.3 An Increase in Public Investment -- 7.4.4 An Increase in the World Interest Rate -- 7.4.5 An Increase in Oil Price -- 7.4.6 An Increase in Supply of Commodity Exports by -- Other South -- 7.5 Conclusion -- 8 Concluding Remarks.