The impact of capital flight from beautiful places: The case of the small open economy of Trinidad and Tobago

Salandy, Michelle; Henry, Lester

doi:10.5897/jeif2017.0847

Cited by 4 publications

(5 citation statements)

References 14 publications

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“…The findings were consistent with findings by Domfeh et al (2018) and Uddin, Yousuf and Islam (2017 who reported that GDP had no significant relationship with capital flight. The findings however were inconsistent with several studies carried out by Forson et al (2017) and Bekele (2017) who reported a negative association and Salandy and Henry (2018) and Pradhan and Gourishankar (2017) who reported a positive relationship.…”

Section: Resultscontrasting

confidence: 76%

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Relationship between corruption and capital flight in Kenya: 1998-2018

Mwangi¹,

Njuguna²,

Achoki³

2019

IJRBS

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The study established the relationship between corruption and capital flight in Kenya over the period 1998 to 2018. Quarterly time series data for calculation of capital flight and for GDP growth rate and exchange rates were collected from the Central Bank of Kenya and Kenya National Bureau of Statistics. Corruption perception index data was collected from the Transparency International website. Two Autoregressive Distributed-lagged models were fitted. Regression coefficients for corruption were -0.114 and 0.066 in the short run and -0.501 in the long run and the p values were 0.523 and 0.691 and 0.558 respectively, indicating no significant relationship. Regression results showed a coefficient of 0.01 and 0.003 for the Gross Domestic Product growth rate in the short run, and 0.049 in the long run. The p values were 0.670, 0.855 and 0.578 respectively denoting no significant relationship. Regression results showed a coefficient of 0.002 and 0.003 for the exchange rate in the short run, 0.43 for the exchange rate in the long run. The p values were 0.891 and 0.584 and 0.095 respectively indicating that a one % increase in the exchange rate would lead to a 0.043 % increase in capital flight in the long run. Regression results of lagged capital flight on capital flight showed a coefficient of 0.904. The p-value was 0.000 meaning that a one % increase in lagged capital flight would lead to a 0.904 % increase in capital flight. The study recommended that the government devises policies that would prevent further capital flight and generate capital flight reversal.

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Section: Resultscontrasting

confidence: 76%

“…GDP growth rate and capital flight Salandy and Henry (2018) examined capital flight in Trinidad and Tobago during the pre and post financial liberalization. The results indicated GDP growth rate and capital flight had a positive and significant relationship.…”

Section: Independent Variables Dependent Variablementioning

confidence: 99%

Relationship between corruption and capital flight in Kenya: 1998-2018

Mwangi¹,

Njuguna²,

Achoki³

2019

IJRBS

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“…Therefore, a 1% increase in domestic investment causes a 29% rise in growth in the economy. This result is in agreement with the analysis of capital outflows by [31], which showed a connection between domestic investment and economic growth.…”

Section: The Coefficients Of the Long-runsupporting

confidence: 92%

“…They may undertake intra-subsidiary transfers across nations due to their presence and operational capability, which promotes and facilitates capital flight. In this instance, it is anticipated that importers would be analytically involved in over-invoicing whereas exporters will be under-invoicing [31]. They acquire enormous amounts of foreign currency as a result, which cannot be recognized or accounted for in the home economy.…”

Section: Trade Is Invoicingmentioning

confidence: 99%

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The Risk of Capital Flight on Economic Growth and National Solvency: An Empirical Evidence from Palestine

Faza’

Badwan

2023

AJEBA

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Capital flight is a serious concern and threat to any country's economy, regardless of its level of development, because it represents a squandered investment that lays the way for future problems. The capital flight occurred in Palestine as a result of economic mismanagement, which was worsened by bad policy decisions that robbed the government of much-needed financial resources. This research investigates the consequences of capital flight on Palestinian economic growth. To obtain these results, they used yearly time series data from (1981 to 2021). The Autoregressive Distributed Lag ARDL model is used to investigate the research variables and data gathered from various sources. The findings reveal that factors such as real GDP in Palestine, capital flight, foreign reserves, foreign debt, and domestic investment are all connected in the long and short term. Moreover, the outcomes of various transactions show that capital flight has a negative and significant impact. In contrast, foreign currency reserves, public debt, and direct investment positively influence long-term economic growth. To curb the growing flood of capital flight, the government must implement realistic economic reform programs. These economic improvements must concentrate on these three areas to achieve strong macroeconomic stability, openness and accountability in public finance management and a supportive environment for local production.

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