CAPITAL MOBILITY, FOREIGN AID, AND OPENNESS: FURTHER PANEL DATA EVIDENCE FROM SUB-SAHARAN AFRICA.

This study uses several alternative panel data estimation techniques (pooled ordinary least squares, fixed effects, and random effects) to examine the effect of domestic savings, foreign aid, the evolution of capital mobility over time, and openness on investment rates for a sample of 29 sub-Saha ran African countries over the time period 1980 to 2001. The empirical evidence suggests the presence of capital mobility in line with previous studies of developing economies and that capital mobility has gradually increased over time. Moreover, foreign aid and openness both have positive and significant impacts on investment rates. [ABSTRACT FROM AUTHOR]