ANALYSIS OF THE DETERMINANTS OF CAPITAL FLIGHT IN NIGERIA

Authors

  • UMARU SAMAILA MAZADU Department of Economics, Borno State University, Borno State, Nigeria
  • MOHAMMED DANSABO USMAN Department of Economics & Development Studies, Federal University Kashere, Gombe State, Nigeria.
  • ABDULRAHMAN ABDULLAHI NADANI Department of Economics & Development Studies, Federal University Kashere, Gombe State, Nigeria.

Keywords:

Capital flight, Determinants, Autoregressive Distributed Lag Approach, Nigeria

Abstract

The objective of this research is to analyze the determinants of capital flight in Nigeria within the context of the Autoregressive Distributed Lag (ARDL) estimation technique. The study utilizes annual data for the period from 1981 to 2018. The bound test result confirms the existence of cointegration, furthermore, the study reveals that GDP growth rate, financial development, external debt, inflation and natural resources endowment are statistically significant and determinants of capital flight in Nigeria both in the long and short run. The study therefore, recommends the need for government to provide a stable financial and macroeconomic environment, address the decay in the critical infrastructure and also ensure that all external loans are invested into productive projects that give higher returns on investment.

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Published

2022-03-24

How to Cite

MAZADU, U. S., USMAN, M. D., & NADANI, A. A. (2022). ANALYSIS OF THE DETERMINANTS OF CAPITAL FLIGHT IN NIGERIA. JOURNAL OF ECONOMICS AND ALLIED RESEARCH, 7(1), 61–72. Retrieved from http://jearecons.com/index.php/jearecons/article/view/97

Issue

Vol. 7 No. 1 (2022): March

Section

Articles