Economic and Financial Review


Central Bank of Nigeria


Savings, Net Foreign Assets, Current Account Deficits, Panel Data Analysis, Sub-Saharan Africa


A profile of the current account balance in sub-Sahara Africa (SSA) shows that many countries in the region have consistently experienced current account deficits, dwindling savings and diminishing net foreign assets. These macroeconomic variables convey important information to economic agents about the health of a nation. The relationships among these three important variables in terms of short-run and long-run dynamics are cloudy in the literature. Therefore, this study examined the long-run and short-run dynamics of savings, net foreign assets and current account balance in subSaharan Africa. Utilising panel econometric techniques with annual data from 38 countries in SSA for the period 1980 to 2013, it was found that savings and net foreign assets impact positively on the current account balance, while foreign direct investment, population growth and dependency ratio had negative impact on current account balance. These findings implied that African governments, desirous of improving their current account balance, must institute policies aimed at increasing savings and net foreign assets and properly manage foreign direct investment, as well as population growth and dependency ratio.

Author Bio

Dr A. I. Adeleke is a staff of the Monetary Policy Department, Central Bank of Nigeria; W. Ohemeng and K. OforiBoateng are staff of the GIMPA Business School, Accra, Ghana.

Publication Title

CBN Economic and Financial Review





Recommended Citation

Adeleke, A. I.; Ohemeng, W. and Ofori-Boateng, K. (2017). Savings, Net Foreign Assets and Current Accounts Dynamics in SubSaharan Africa. CBN Economic and Financial Review. 55(1), 1-27.



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