Working Papers

This study seeks to assess the progress made so far and the challenges that face regional integration process in the Horn of Africa with especial emphasis on IGAD; and it provides a roadmap to enhance the regional efforts beyond the creation of free trade area. The objective of the assessment is to provide analytical policy recommendations that help to establish an effective regional economic community. The analysis shall cover diverse issues such as conceptual issues…

The Horn of Africa countries had poor economic growth for many decades before the 2000’s. Various studies were conducted to uncover the factors responsible for the poor economic performance and divergence from the developing regions. Opinions varied, however, on why the countries in the Horn sub-region have been some of the poorest in the world. In identifying growth determinants in the subregion, a diagnostics approach is applied, which reveals that limited access to finance (from…

Financial development and domestic capital formation are principal driving force behind any country's sustainable growth, and effective financial institutions are important facilitators. Financial institutions are the key channel between savings and investment, and their efficiency is a key determinant of a country's economic growth. This strong positive relation between financial sector development and economic growth has been supported by theoretical and empirical studies. The countries with advanced economies exhibit well developed and mature financial systems…