Record Details

Does Capital Flight Have a Force to Bear on Nigerian Economic Growth?

International Journal of Developing Societies

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Title Does Capital Flight Have a Force to Bear on Nigerian Economic Growth?
 
Creator Olugbenga, Adaramola Anthony
Alamu, Obalade Adefemi
 
Subject —
Capital flight; abnormal outflow; net error and omission; net foreign direct investment, foreign reserve
 
Description The study presents a critical examination of the impacts of capital flight on Nigeria economic growth over a period of 30 years (1981-2010). The Johansen co-integration test was employed to investigate the dynamic relationship between capital flight and economic growth. Results show that there is a long run co-integration among the variables. Furthermore, that capital flight has negative impact on economic growth only holds in the short run. It was also discovered that capital flight significantly and positively influence Nigerian economic growth in the long run. The beneficial aspect of capital flight as revealed in this study was traceable to importation of capital/industrial goods payments for which constitute capital outflows and the uses of which transform to economic growth. Based on the empirical findings, it was recommended that creation of enabling/friendly business environment is a way of encouraging foreign investors to come and invest in the country as well as re-investing the profits and that curbing of political crisis with provision of infrastructures to reduce operating cost will be a right step in a right direction.
 
Publisher World Scholars
 
Contributor —
 
Date 2013-06-30
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://wscholars.com/index.php/ijds/article/view/422
10.11634/216817831504422
 
Source International Journal of Developing Societies; Vol 2, No 2 (2013); 80-86
2168-1791
2168-1783
 
Language eng
 
Relation http://wscholars.com/index.php/ijds/article/view/422/pdf