Transmission Channels and Impact of Global Financial Crisis on Sub-Saharan Africa Economies
"Since the onset of financial crisis, different thoughts have been investigated to address the issues of crisis on African economies. This study reviews transmission channels through which the effects of crisis has spread over Sub-Saharan Africa economies. In this respect, descriptive and empirical analyses have been done to derive some outcomes and necessary policies to overcome the effects of crisis in short-run and long-run. As results, real and financial sectors have been hit by crisis with consequences such as a slump in sales, cancellation and postponements of orders and projects, and dismissal threatens which are worsening living conditions of households. Moreover, empirical analysis found real channels such as trade and foreign aid more sensitive into transmission effects of crisis in SSA economies. However, the role of financial channels such as foreign direct investment into transmission effects of crisis is not negligible. Given global recession in western and emerging economies, foreign aid and FDI would shrink which might further delay growth process of the region."