Governance, Capital flight and Industrialisation in Africa

Simplice Asongu and Nicholas Odhiambo

No 19/077, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: The study examines the role of governance in modulating the effect of capital flight on industrialisation in Africa. The empirical evidence is based on Generalised Method of Moments and governance is bundled by principal component analysis, namely: (i) political governance from political stability and “voice and accountability”; (ii) economic governance from government effectiveness and regulation quality; and (iii) institutional governance from corruption-control and the rule of law. First, governance increases industrialisation whereas capital flight has the opposite effect; and second, governance does not significantly mitigate the negative effect of capital flight on industrialisation. Policy implications are discussed.

Keywords: Econometric modelling; Capital flight; Governance; Industrialisation; Africa (search for similar items in EconPapers)
JEL-codes: C50 F34 G38 O14 O55 (search for similar items in EconPapers)
Pages: 33
Date: 2019-01
New Economics Papers: this item is included in nep-cfn and nep-fdg
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Citations: View citations in EconPapers (26)

Forthcoming: Journal of Economic Structures

Downloads: (external link)
http://www.afridev.org/RePEc/agd/agd-wpaper/Govern ... sation-in-Africa.pdf Revised version, 2019 (application/pdf)

Related works:
Journal Article: Governance, capital flight and industrialisation in Africa (2019)
Working Paper: Governance, Capital flight and Industrialisation in Africa (2019)
Working Paper: Governance, Capital flight and Industrialisation in Africa (2019)
Working Paper: Governance, Capital flight and Industrialisation in Africa (2019)
Working Paper: Governance,capital flight and industrialisation in Africa (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:agd:wpaper:19/077

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