Capital flight, institutional quality, and economic growth: Evidence from African economies

Sabrina Hidri ()

International Journal of Innovative Research and Scientific Studies, 2025, vol. 8, issue 3, 3776-3785

Abstract: This paper examines the impact of capital flight on economic growth in Africa, highlighting the crucial role of institutional quality. Through an econometric analysis of data from 28 African countries observed during the 2000-2022 period, it is shown that capital flight significantly hinders growth by reducing the resources available for economic development. However, strong institutions can mitigate this negative impact through transparent and effective governance, notably by reducing corruption and enhancing political stability. The study recommends improving institutional quality to limit illicit financial flows and promote sustainable growth, while also emphasizing significant income-based disparities between countries.

Keywords: Africa; capital flight; economic growth; institutional quality. (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ijirss.com/index.php/ijirss/article/view/7387/1556 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aac:ijirss:v:8:y:2025:i:3:p:3776-3785:id:7387

Access Statistics for this article

International Journal of Innovative Research and Scientific Studies is currently edited by Natalie Jean

More articles in International Journal of Innovative Research and Scientific Studies from Innovative Research Publishing
Bibliographic data for series maintained by Natalie Jean ().