Transmission of Financial Crisis: Evidence of Sub-Sahara Africa (SSA)

Abstract

The world was struck by a chain of financial crisis between 2006 and 2012. In 2007, began the subprime crisis which gave way to European debt crisis in 2010. As the world tried to recover in 2009, this European debt crisis and Greece sovereign debt (2011) set in. The study investigates through descriptive techniques, correlation and regression, evidence and openings through which these crisis reached and how it affected Sub-Sahara Africa. Using three indicators; GDP growth rate, export/GDP ratio and inflation, we found statistically evidence of the financial tumor in this continent. With numerous indicators of financial crisis we could limit ourselves to three because the data source provided us with more detail information. We suggested that African government multinational and local firms should have expert that can predict and mitigate the impact of a financial crisis.