The Global Financial Crisis and Adjustment to Shocks in Kenya, Tanzania, and Uganda PDF Download

Author: Ms.Iyabo Masha
Publisher: International Monetary Fund
ISBN: 1462360629
Category : Business & Economics
Languages : en
Pages : 44

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Book Description
This paper analyzes the impact of the global financial crisis on the banking systems in Kenya, Tanzania, and Uganda, and their responses to it, using information from banking system balance sheets. The paper undertakes two distinct analyses. In the first analysis, the focus is on the trend in intersectoral balances and positions in the long run, using annual data for 2001–08. The second analysis uses monthly data for December 2007–May 2009 to determine how intersectoral balance sheets adjusted in the short run to sudden changes in the economic environment during the recent global financial crisis.

Author: Arne Bigsten
Publisher: Springer
ISBN: 1349150355
Category : Business & Economics
Languages : en
Pages : 262

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Book Description
Uganda in the 1970s and early 1980s was one of Africa's more tragic economic stories. Emerging from civil war, it had to embark on reform in the early to mid-1980s from a position of severe political weakness. In the study, the effects of economic policy at the aggregate level are discussed in detail, but 'snapshot' empirical analyses of responses at the household level, both urban and rural, are also presented. Uganda was for many years considered to be Africa's 'worst case'; its recent recovery thus provides hope for similar countries in the region.

Author: Stella Kaendera
Publisher: International Monetary Fund
ISBN: 1462389880
Category : Business & Economics
Languages : en
Pages : 25

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Book Description
This paper studies the evolution of the exchange rates of sub-Saharan African currencies in the context of the global financial crisis. In particular, it analyzes the reasons behind the differences in the magnitude and volatility of the exchange rates among countries. To this end, it takes a sample of seven countries, four members of the East African Community (EAC) (Kenya, Rwanda, Tanzania, and Uganda), and three others, which experienced large exchange rate losses at the onset of the crisis: Ghana, Nigeria, and Zambia. First, it analyzes the movements of the exchange rates with respect to the U.S. dollar and two other major currencies. Second, it tries to link the magnitude of their movements to key factors, relating to the external environment and the countries’ internal policies.

Author: M. Ayhan Kose
Publisher: World Bank Publications
ISBN: 1464815453
Category : Business & Economics
Languages : en
Pages : 403

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Book Description
The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.

Author: Anna Reva
Publisher: World Bank Publications
ISBN: 0821389408
Category : Business & Economics
Languages : en
Pages : 307

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Book Description
"The food, fuel, and financial crises that started in 2008 reverberated throughout the global economy, causing job losses, poverty, and economic, financial, and political upheaval in countries all over the world. [This book] shows how global crises affected the poorer, more vulnerable, powerless, and less visible populations in developing countries."--Back cover.

Author: Mr.Troy Matheson
Publisher: International Monetary Fund
ISBN: 1484362012
Category : Business & Economics
Languages : en
Pages : 40

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Book Description
The global financial crisis was a stark reminder of the importance of cross-country linkages in the global economy. We document growth synchronization across a diverse group of 185 countries covering 7 regions, and pay particular attention to the period around the global financial crisis. A dynamic factor model is used to decompose each country’s growth into contributions from global, regional, and idiosyncratic shocks. We find a high degree of global synchronization over 1990 to 2011, particularly across advanced economies. Examining the period around the global financial crisis, we find global shocks had large and widespread effects on growth, with more diversity in growth experiences in the early part of the recovery. In a recursive experiment, we find rising global growth synchronization just prior to the crisis, largely resulting from a shift in the importance of global shocks between countries. In contrast, the crisis period caused a much more widespread increase in growth synchronization, and was followed by a similarly pervasive decrease in synchronization in the early recovery.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451821271
Category : Business & Economics
Languages : en
Pages : 54

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Book Description
This paper presents the staff report for Kenya’s 2009 Article IV Consultation on economic development and policies. The progress Kenya achieved on the growth and poverty reduction fronts stalled in 2008 owing to a series of adverse developments, including the global economic crisis. The political situation is generally stable, but there appears to be constraining consensus on key issues. The spillover effect of the global financial crisis slowed export growth, tourism receipts, remittances, and private capital inflows.

Author: Hany Abdel-Latif
Publisher:
ISBN:
Category :
Languages : en
Pages : 22

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Book Description
This paper investigates the relationship between the recent global financial crisis and child labour in Tanzania. Using the difference-in-difference methodological framework, we identify households' access to credit as a possible transmission channel of the financial crisis to child labour. Unlike most of the existing studies that employ self-reported shocks, we exploit the incidence of the global crisis as an exogenous shock to compare households that were credit recipients before the crisis with households that were not recipients of credit either prior to the crisis or in its immediate aftermath. To deal with possible bias from the endogeneity of access to credit, this study proposes a new instrument that considers the regional concentration of available micro finance institutions and the number of households' assets. Unlike instruments suggested by the existing literature, our proposed instrument incorporates information on both demand and supply sides of credit access irrespective of whether a household has actually received credit. To avoid the wealth effect which would violate the exogeniety condition, we suggest to count the number of the household's assets no matter how much value they possess. By doing so, our instrument utilizes information on how risk averse a household is and therefore their chances of making a successful loan application. The empirical results reveal that a negative shock on credit-recipient households is associated with a significant increase in child labour in Tanzania.

Author: Mr.Stijn Claessens
Publisher: International Monetary Fund
ISBN: 1475561008
Category : Business & Economics
Languages : en
Pages : 66

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Book Description
This paper reviews the literature on financial crises focusing on three specific aspects. First, what are the main factors explaining financial crises? Since many theories on the sources of financial crises highlight the importance of sharp fluctuations in asset and credit markets, the paper briefly reviews theoretical and empirical studies on developments in these markets around financial crises. Second, what are the major types of financial crises? The paper focuses on the main theoretical and empirical explanations of four types of financial crises—currency crises, sudden stops, debt crises, and banking crises—and presents a survey of the literature that attempts to identify these episodes. Third, what are the real and financial sector implications of crises? The paper briefly reviews the short- and medium-run implications of crises for the real economy and financial sector. It concludes with a summary of the main lessons from the literature and future research directions.

Author: Chris Papageorgiou
Publisher: International Monetary Fund
ISBN: 145521681X
Category : Business & Economics
Languages : en
Pages : 54

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Book Description
This paper investigates the short-run effects of the 2007-09 global financial crisis on growth in (mainly non-fuel exporting) low-income countries (LICs). Four conclusions stand out. First, for many individual LICs, 2009 was not extraordinarily calamitous; however, aggregate LIC output declined sharply because LICs were unusually synchronized. Second, the growth declines are on average well explained by the decline in export demand. Third, if the external environment facing LICs improves as forecast, their growth should rebound sharply. Finally, and contrary to received wisdom, there are few robust relationships between the cross-country growth variation and the policy and structural environment; the main exceptions are reserve coverage and labor-market flexibility.