Extent of Capital Flight and Its Impact on Economic Growth: The Case of WAEMU countries

Sodji, Kuamvi

doi:10.29259/sijdeb.v6i3.255-276

Cited by 3 publications

(3 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…CF hinders economic growth in SSA. Previous research has established the detrimental relation between CF and growth in the literature (Lawal et al , 2017; Orimolade and Olusola, 2018; Ogbenro, 2019; Badwan and Atta, 2019; Orji et al , 2020; Badwan, 2021; Sodji, 2022). A negative impact from the CF is anticipated in the region given its current level in SSA.…”

Section: Resultsmentioning

confidence: 99%

“…The study used the ARDL bounds test approach and showed that both in the short and long run, CF considerably reduces economic growth. Sodji (2022) investigated the influence of CF on economic growth in the West African Economic and Monetary Union using dynamic fixed-effects estimation. The study found that CF harms economic growth over the long term.…”

Section: Brief Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Does institutional quality modulate the effect of capital flight on economic growth in sub-Saharan Africa?

Akinlo

2023

JMLC

View full text Add to dashboard Cite

Purpose Sub-Saharan African (SSA) region has been battling illegal outflow of capital over the years, with little success recorded so far. Without adequate attention, unemployment, infrastructure deficiencies and inefficient capital might be worse in the future. The purpose of this study is to investigate if institutional quality mitigates the effect of capital flight (CF) on economic growth. Design/methodology/approach The panel data from 26 SSA countries spanning 1998 to 2018 are used. The analysis of this study was carried out through a two-step generalized method of moments technique. The principal component index is used to group the institutional quality/governance indicators into three categories: political governance, economic governance and institutional governance. Findings The study found that CF is harmful to the economic growth of the SSA region. The study also found that, among the indicators of institutional quality, only the rule of law and control of corruption stimulate economic growth. Contrary to expectation, the finding indicates that institutional quality does mitigate the effect of CF on economic growth in the SSA region. Originality/value This study provides an insight into the relevance of institutional quality in mitigating CF in sub-Saharan African region.

show abstract

Section: Resultsmentioning

confidence: 99%

Section: Brief Literature Reviewmentioning

confidence: 99%

Does institutional quality modulate the effect of capital flight on economic growth in sub-Saharan Africa?

Akinlo

2023

JMLC

View full text Add to dashboard Cite

show abstract

“…The imbalance of capital inflows and outflows in these economies caused by capital flight leads to insufficient internal capital formation in emerging economies and thereby limits the productive capacity of these economies. A shift of saving away from financing the domestic investment of an economy to abroad results in lower economic growth (Sodji, 2022). Therefore, capital controls can be welfare-improving for emerging economies.…”

Section: Introductionmentioning

confidence: 99%

Does capital flight tone down economic growth? Evidence from emerging Asia

Basher,

Mamun,

Bal

et al. 2023

JFEP

View full text Add to dashboard Cite

Purpose This study aims to offer an up-to-date estimate of capital flight from selected emerging Asian economies and examine the anti-growth phenomenon of capital flight by using annual data for the period 1981–2019. Design/methodology/approach The study relies on residual methods to derive the estimate of capital flight with necessary adjustments. It then applies the autoregressive distributed lag Bounds testing approach in examining the impact of capital flight on the economic growth of Asian emerging economies. Findings The study identifies capital flight as the attributor to the slower economic growth of the selected emerging economies of Asia. Practical implications Apart from appropriate policies addressing the issues causing capital flight, unleashing the way of private sector-led growth of the emerging countries with necessary policy, infrastructural, institutional and regulatory support can rather help them retain and repatriate domestic capital. Originality/value The capital flight estimates in earlier studies are antithetical as they differ in terms of definition and estimation procedure. Again, the growth effect of capital flight in these economies has received meager attention in research and policy debates. Furthermore, being country-specific or region-specific, existing studies are unable to compare the growth effect of capital flight for different emerging economies in this region. Examining the growth effects for a large number of countries separately based on a common estimate of capital flight can resolve these issues that this study aims to do.

show abstract

An empirical investigation of capital flight and economic growth nexus in Africa

Antwi,

Tetteh,

Armah

et al. 2024

The Journal of International Trade & Economic Development

View full text Add to dashboard Cite

Extent of Capital Flight and Its Impact on Economic Growth: The Case of WAEMU countries

Cited by 3 publications

References 0 publications

Does institutional quality modulate the effect of capital flight on economic growth in sub-Saharan Africa?

Does institutional quality modulate the effect of capital flight on economic growth in sub-Saharan Africa?

Does capital flight tone down economic growth? Evidence from emerging Asia

An empirical investigation of capital flight and economic growth nexus in Africa

Contact Info

Product

Resources

About