Fighting African Capital Flight: Trajectories, Dynamics and Tendencies

Financial Innovation, 6(14), pp. 1-21(February, 2020)

28 Pages Posted: 16 Jan 2020 Last revised: 18 Feb 2020

See all articles by Simplice Asongu

Simplice Asongu

African Governance and Development Institute

Joseph I. Uduji

University of Nigeria Enugu Campus

Elda N. Okolo-Obasi

Development Strategy Centre Nigeria

Date Written: December 26, 2019

Abstract

An April 2015 World Bank report on attainment of the Millennium Development Goal (MDG) extreme poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of sub-Saharan Africa (SSA), in spite of the sub-region enjoying more than two decades of growth resurgence. This study builds on a critique of Piketty’s ‘capital in the 21st century’ and recent methodological innovations on reverse Solow-Swan to review empirics on the adoption of common policy initiatives against a cause of extreme poverty in SSA: capital flight. The richness of the dataset enables the derivation of 14 fundamental characteristics of African capital flight based on income-levels, legal origins, natural resources, political stability, regional proximity and religious domination. The main finding reveals that regardless of fundamental characteristic, from a projection date of 2010, a genuine timeframe for harmonizing policies is between 2016 and 2023. In other words, the beginning of the post-2015 agenda on sustainable development goals coincides with the timeframe for common capital flight policies.

Keywords: Econometric modeling; Capital flight; Poverty; Africa

JEL Classification: C50; E62; F34; O19; O55

Suggested Citation

Asongu, Simplice and Uduji, Joseph I. and Okolo-Obasi, Elda N., Fighting African Capital Flight: Trajectories, Dynamics and Tendencies (December 26, 2019). Financial Innovation, 6(14), pp. 1-21(February, 2020). Available at SSRN: https://ssrn.com/abstract=3509773 or http://dx.doi.org/10.2139/ssrn.3509773

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Joseph I. Uduji

University of Nigeria Enugu Campus ( email )

Department of Accountancy
Box 15540, Enugu
Enugu, NC Enugu 234
Nigeria

Elda N. Okolo-Obasi

Development Strategy Centre Nigeria ( email )

84Nza Street Independence Layout Enugu
Enugu, 400001
Nigeria
08063631111 (Phone)
400001 (Fax)

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