02213cas a2200265 a 4500 AALejournalIMF014453 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498359290 1018-5941 BD-DhAAL BD-DhAAL David, Antonio. Does Openness Matter for Financial Development in Africa? / Antonio David, Montfort Mlachila, Ashwin Moheeput. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (38 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes the links between financial and trade openness and financial development in Sub-Saharan African (SSA) countries. It is based on a panel dataset using methods that tackle slope heterogeneity, cross-sectional dependence and non-stationarity, important econometric problems that are often ignored in the literature. The results do not point to a general direct robust link between trade and capital account openness and financial development in SSA, once we control for other factors such as GDP per capita and inflation. But there is some indication that trade openness is more important for financial development in countries with better institutional quality. The findings might be due to a number of factors including distortions in domestic financial markets, relatively weak institutions and/or poor financial sector supervision. Thus, African policy makers should be cautious about expectations regarding immediate gains for financial development from greater international integration. Such gains are more likely to occur through indirect channels. Mode of access: Internet Mlachila, Montfort. Moheeput, Ashwin. IMF Working Papers; Working Paper ; No. 2014/094 Full text available on IMF http://elibrary.imf.org/view/journals/001/2014/094/001.2014.issue-094-en.xml IMF e-Library