Abstract
In the wake of the global economic and financial cnsts, experts and analysts agreed that the initial effects on African financial sectors would be minimal because of the limited exposure to the international financial markets. However, African countries are more integrated than before with the world economy through the following transmission channels: international trade, foreign direct and portfolio investments, foreign aid flows, private remittances, and tourism; and since they are predominantly primary commodity exporters, their economies was negatively affected by the recession in many developed countries due to the sharp decline in world demand for commodities and in their prices. This paper takes the view that African countries were more susceptible to external shocks than other developing regions of the world because of their flawed macroeconomic fundamentals, but more importantly, the transmission channels emphasize the extent of the region's vulnerabilities.
Recommended Citation
Owoye, Oluwole
(2009)
"The Global Economic and Financial Crisis: An Overview of the Effects on African Countries,"
Journal of African Policy Studies: Vol. 15:
No.
1, Article 2.
Available at:
https://ecommons.udayton.edu/joaps/vol15/iss1/2