Capital Inflows, Industrialisation And Inclusive Growth In Sub-Saharan Africa: The Moderating Roles Of Ifrs Adoption Speed And Institutions

Abstract

This study investigates the impact of the International Financial Reporting Standards (IFRS) adoption speed and the strength of institutional structures on attracting capital inflows, fostering industrialisation, and promoting inclusive growth in Sub-Saharan Africa. Emphasising the role of IFRS as a pivotal financial screening tool for investors, the study highlights the urgency of adopting these standards in a region marked by a significant financing gap for sustainable industrial development. Utilising a quantitative approach and covering data from 48 Sub-Saharan African countries from 2005 to 2019, the study employs descriptive and inferential statistical methods, including a twostep system GMM estimator, to analyse the data. Key findings reveal that the speedy adoption of IFRS significantly enhances capital inflows, especially in countries with robust institutional support, and that early adopters of IFRS effectively leverage these inflows for accelerated industrialisation and inclusive growth. The study therefore advocates for rapid IFRS adoption and the strengthening of institutional structures in Sub-Saharan countries to optimise capital inflows essential for industrial development and achieving inclusive growth.