Financial Volatility, Macroprudential Regulation and Economic Growth in Low-Income Countries

April 28, 2016, Clermont-Ferrand

A workshop organised by Ferdi

A workshop with the team of the project “Financial Volatility, Macroprudential Regulation and Economic Growth in Low-Income Countries" has been organised by Ferdi in Clermont-Ferrand. The objectives was to review the papers and the case studies expected in the framework of this project.

The aims of the forthcoming papers is :

·  to contribute to the existing analytical literature in areas related to the links between financial volatility and economic growth, and how the macroprudential regulatory rules integrated in Basel III (especially those deemed appropriate for the institutional context of developing countries, such as liquidity requirements and leverage ratios) can help to mitigate the adverse effects of financial volatility on growth;

·  to provide new evidence on the impact of financial volatility and its determinants (both domestic and external) on economic growth, with particular attention to the case of the low-income countries in Sub-Saharan Africa;

The case studies are implemented for Francophone Sub-Saharan African countries. They are focusing on the links between financial volatility (broadly defined to include volatility of remittances and capital flows, both public and private), macroprudential regulation, and growth, to account for their specific monetary and financial regime, and complement case studies being developed in parallel ESRC-DFID projects, thereby allowing a broader comparative analysis of these issues for the region;

Finaly, the aim is to identify the practical policy implications of the analytical and empirical research and discuss the extent to which they differ from the “consensus view” in areas related to the benefits of financial liberalization and the effectiveness of macroprudential policy (especially those considered under Basel III) in promoting growth. Discussed papers : 

Pierre-Richard Agénor, “Growth and Welfare Effects of Macroprudential Regulation” |Download the presentation slide (website of the University of Manchester)

Pierre-Richard Agénor, "Aid Volatility, Human Capital, and Growth" | Download the presentation slide (website of the University of Manchester)

Kyriakos Neanidis : “Volatile Capital Flows and Economic Growth: The Role of Macro-prudential Regulation” |Download the policy brief (Ferdi B146)

Patrick Plane, Jean-Louis Combes, Rasmané Ouedraogo et Tidiane Kinda,  “How Does External Financing Drive GDP Growth in Developing Countries?”| Download the presentation slide

Samuel Guérineau, Florian Léon, Michael Goujon et Relwende Sawadogo, "Information sharing, credit booms, and financial stability in developing countries" (article et étude de cas) |Download the presentation slide

Patrick Guillaumont, Sylviane Guillaumont Jeanneney, Lisa Chauvet, Jules Sampawende Tapsoba, Laurent Wagner, Marin Ferry, Eric Gabin Kilama, "Economic Volatility and Inequality: Do Aid and Remittances Matter?" |Download the presentation slide

Eric Gabin Kilama, "On the Cyclicaland StabilizingProfiles of AidFlowsin LICs" (étude de cas) |Download the presentation slide