THE MAGNITUDE AND DETERMINANTS OF CAPITAL FLIGHT - THE CASE FOR 6 SUB-SAHARAN AFRICAN COUNTRIES

N HERMES*, R LENSINK

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

34 Citations (Scopus)

Abstract

Most studies treat capital flight as an exclusively Latin American problem. This paper estimates capital flight for six African countries and shows that the emphasis on Latin American capital flight is not correct. It appears that the burden of capital flight is also important for many African countries. Moreover, this paper tries to find some determinants for the African countries' capital flight. The increase of government and government-guaranteed foreign debt and the overvaluation of the real exchange rate appear to be the most important explanatory factors of capital flight for the African countries in this study.

Original languageEnglish
Pages (from-to)515-530
Number of pages16
JournalDe Economist
Volume140
Issue number4
Publication statusPublished - 1992

Keywords

  • PUBLIC DEBT

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