Fighting African Capital Flight: Empirics on Benchmarking Policy Harmonization

Simplice Asongu

No 13/006, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: With earthshaking and heartbreaking trends in African capital flight provided by a new database, this paper complements existing literature by answering some key policy questions on the feasibility of and timeframe for policy harmonization in the battle against the economic scourge. The goal of the paper is to study beta-convergence of capital flight across a set of 37 African countries in the period 1980-2010 and to discuss the policy implications. Three main findings are established. (1) African countries with low capital flight rates are catching-up their counterparts with higher rates, implying the feasibility of policy harmonization towards fighting capital flight. (2) Petroleum-exporting and conflict-affected countries significantly play out in absolute and conditional convergences respectively. (3) Regardless of fundamental characteristics, a genuine timeframe for harmonizing policies is within a horizon of 6 to 13 years. In other words, full (100%) convergence within the specified horizon is an indication that policies and regulations can be enforced without distinction of nationality or locality.

Keywords: Econometric modeling; Big push; Capital flight; Debt relief; Africa (search for similar items in EconPapers)
JEL-codes: C50 E62 F34 O19 O55 (search for similar items in EconPapers)
Pages: 45
Date: 2013-07-20
New Economics Papers: this item is included in nep-afr and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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http://www.afridev.org/RePEc/agd/agd-wpaper/Fighti ... cy-Harmonization.pdf Revised version, 2013 (application/pdf)

Related works:
Journal Article: Fighting African Capital Flight: Empirics on Benchmarking Policy Harmonization (2014)
Working Paper: Fighting African Capital Flight: Empirics on Benchmarking Policy Harmonization (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:13/006

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