Capital flight can cause challenges regarding the domestic availability of financial resources in sustaining investment Nigeria. The purpose this study is to examine connection between capital components and employed autoregressive distributive lag model (ARDL) analyze time series data for Nigeria spanning from 1981 2018. found that changes external debt, current account balance, foreign direct...

Capital flight continues to be an issue of paramount importance for developing economies, as it deprives them the funds required economic takeoff. Hence, this paper aims analyze effect regional financial integration (RFI) on capital in Africa. Based a sample 23 countries, we specify and estimate asset demand model using portfolio choice analysis by system-generalized method moments period 1996-...

This article argues that capital flight of real investment presents governments with a quadrilemma. First, can tailor their policies to attract investors – but this is incompatible whole range alternative policy choices. Second, they simply accept robust stock and tax base. Third, harmonize its taxes regulations other states international independence. Fourth, impose controls mobility. These in...

This study examines the growth effects of real exchange rate (RER) misalignment and capital flight in Turkey during period 1981-2019. The World Bank’s residual method suggests that is a widespread problem Single Equation Approach adopted to delineate series RER identifies Turkey’s significantly misaligned throughout sample period. Their are then examined using autoregressive distributed lag (AR...

This paper looks at the effect of moral hazard, resulting from information asymmetries in financial markets, on growth in financially open developing countries. We show that if domestic entrepreneurs can gamble with foreign creditors’ money, borrowing under standard debt contracts is constrained by a No-Gambling Condition similar to that of Hellmann, Murdock, and Stiglitz (2000). However, this ...

China has experienced a dramatic swing from net capital inflows to large net outflows in recent years. Using balance of payments data, an analysis of the underlying factors that drove China’s recent capital outflows since mid-2014 were (1) corporates adjusting their balance sheets to reduce foreign exchange exposure or to unwind “carry trade”; (2) Chinese corporate and households seeking to div...

During the last few decades, many emerging markets have lifted restrictions on cross-border financial transactions. The conventional view was that this would allow these countries to: (i) receive capital inflows from advanced countries that would finance higher investment and growth; (ii) insure against aggregate shocks and reduce consumption volatility; and (iii) accelerate the development of ...