Paper Title
Capital Flows and Commodity Price Effects on Output Growth in Sub Sahara Africa

Abstract
Using a large panel of 18 sub-Sahara African countries over the last 45 years, the paper shows that capital flows measured by foreign direct investment and commodity prices influenced output growth. This is conducted through the traditional panel data approaches – pooled, fixed and random panel data models. The paper uses the Redundant Fixed Effects Likelihood Ratio and Hausman tests to select the most reliable panel data model among the three traditional approaches. The paper found that physical investments (proxy by GCF), capital flows (proxy by Foreign Direct investment, FDI), Exchange Rate, Population growth rate and Commodity Prices have significant effects on output growth of major commodity exporters in Sub-Sahara countries. Even, after controlling for inclusion of explanatory parameters, the results show that positive change in physical investments and exchange rates reduce output growth in these countries by significant percentiles. In addition, the negative effect of exchange rate shows the high dependence of the region on foreign goods and services, specifically, in the process of acquiring capital equipment and security tools. Based on the findings, the paper recommends that increase expenditures on general and physical investments to promote capital flows and output growth in these countries are highly essential. Keyword- Capital flows, Commodity prices, Output growth and Fixed effects panel model JEL Classification: E22, F22, F31 and F39