EconPapers    
Economics at your fingertips  
 

Governance and the capital flight trap in Africa

Simplice Asongu () and Joseph Nnanna

Transnational Corporations Review, 2020, vol. 12, issue 3, 276-292

Abstract: The study examines the use of governance tools to fight capital flight by reducing the capital flight trap. Two overarching policy syndromes are addressed in the study. It first assesses whether governance is an effective deterrent to the capital flight trap in Africa, before examining what thresholds of government quality are required to fight the capital flight trap in the continent. The following findings are established. Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. The net effects from interactions of the capital flight trap with political stability, regulation quality, economic governance and corruption-control on capital flight are positive. The critical masses at which ‘voice and accountability’ and regulation quality can complement the capital flight trap to reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best performing countries. Policy implications are discussed.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1080/19186444.2020.1771123 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Governance and the Capital Flight Trap in Africa (2020) Downloads
Working Paper: Governance and the Capital Flight Trap in Africa (2020) Downloads
Working Paper: Governance and the Capital Flight Trap in Africa (2020) Downloads
Working Paper: Governance and the Capital Flight Trap in Africa (2020) Downloads
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:taf:rncrxx:v:12:y:2020:i:3:p:276-292

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rncr20

DOI: 10.1080/19186444.2020.1771123

Access Statistics for this article

Transnational Corporations Review is currently edited by Hugh Deng

More articles in Transnational Corporations Review from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

 
Page updated 2021-10-24
Handle: RePEc:taf:rncrxx:v:12:y:2020:i:3:p:276-292