An Analysis of External Debt and Capital Flight in the Severely Indebted Low Income Countries in Sub-Saharan Africa

62 Pages Posted: 15 Feb 2006

See all articles by S. Ibi Ajayi

S. Ibi Ajayi

University of Ibadan - Department of Economics; Fonds Monetaire International

Date Written: June 1997

Abstract

The general objective of this study is to analyze the external debt and debt burdens of the severely indebted sub-Saharan African countries, estimate the magnitude of capital flight from them, and relate the estimate of capital flight to some macroeconomic aggregates. The study also contains policy implications of international efforts to deal with the high levels of external debt in sub-Saharan Africa in conditions of extreme poverty, and stagnant and declining exports. It questions the theoretical foundation in which the external debt strategy has been based and offers solutions to the external debt problem.

JEL Classification: B41, F32, F34

Suggested Citation

Ajayi, S. Ibi, An Analysis of External Debt and Capital Flight in the Severely Indebted Low Income Countries in Sub-Saharan Africa (June 1997). IMF Working Paper No. 97/68, Available at SSRN: https://ssrn.com/abstract=882343

S. Ibi Ajayi (Contact Author)

University of Ibadan - Department of Economics ( email )

Department of Economics
Ibadan, OK Oyo State 900001
Nigeria
234-2-2410089 (Phone)
234-2-2410089 (Fax)

Fonds Monetaire International ( email )

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Washington, DC 20431
United States