Did the global financial crisis hit Africa? Insights from a multi-country firm level survey

We use a unique cross-sectional firm-level dataset collected in 2010 covering 19 countries and about 3000 manufacturing firms and show that, contrary to common perceptions, Sub-Saharan African countries were affected by the financial crisis. Our results suggest that productivity levels—labor and total factor productivity—are significantly important indicators for the probability of whether a plant will feel the ramifications of an exogenous shock like the recent financial crisis. Other important variables identified are firms' per worker levels of human and physical capital, size and age. Moreover, we find strong evidence for the role of trade as a transmission channel of the crisis, as it carries over from northern economies to Sub-Saharan Africa. It turns out that invoking the destination of exports into the analysis is crucial for understanding how African countries were affected by the crisis.