Compiling and Understanding the Flow of Funds in Developing Countries
In this paper, we consider the construction of flow of funds data in a small sample of developing economies, which are the subjects of a general research program for which this paper serves in part as background: Bangladesh, India, Sri Lanka, Kenya, Tanzania, Uganda and Zambia. We develop a simplified internationally comparable framework for the compilation of flow of funds tables. We demonstrate that widely available IMF data include all the major building blocks necessary to construct a surprisingly detailed flow of funds table for any reporting country, using the framework which we set out. We compile flow of funds tables for our sample countries for a recent year for which broadly adequate data are available, using IMF data. We also evaluate and comment on these data, and compare them with national source flow of funds data for India. Our methodology for compiling the flow of funds provides a new and practical technology to assist developing countries in compiling flow of funds data. It provides a framework within which national statisticians can adapt preexisting data compiled for the IMF, and upon which they can build and extend their own flow of funds data at substantially lower cost than would be incurred in compiling these data from scratch.