The characteristics of informal financial markets in sub-Saharan Africa

Abstract

This paper provides a brief review of both the relevant theoretical and empirical literature; an account of the usefulness of the theoretical literature for interpreting the empirical research on informal finance in Africa; brief notes on some of the implications of the economics of incomplete information and imperfect contract enforcement for financial policy in Africa; and suggestions for a research programme that integrates detailed empirical observation with relevant theory. Comments on the paper follow on pp 204-211. � 2004 Elsevier Science B.V., Amsterdam. All rights reserved.