Intro -- Contents -- I. INTRODUCTION -- II. TRENDS IN INTERNATIONAL FINANCIAL INTEGRATION -- III. EXTERNAL ASSET DYNAMICS -- IV. EXCHANGE RATES AND THE ADJUSTMENT PROCESS -- V. POLICY IMPLICATIONS -- VI. CONCLUDING REMARKS -- References -- APPENDIX I.

The paper uses a unique database covering 44 countries in sub-Saharan Africa (SSA) countries between 2000 and 2007 to study the determinants of the allocation and composition of flows across countries, as well as channels through which private capital flows could affect growth. In our sample,...