IDEAS home Printed from https://ideas.repec.org/a/ebl/ecbull/eb-13-00839.html
   My bibliography  Save this article

Capital flight from resource rich developing countries

Author

Listed:
  • Kazue Demachi

    (Graduate School of International Cooperation Studies, Kobe University)

Abstract

This paper analyzes the magnitude and determinants of capital flight from resource-rich developing countries (RRDCs) using macro-panel data from 21 countries from 1990 to 2011. Calculations reveal that capital flight from RRDCs was less serious than that experienced by some Latin American countries during the 1980s. In addition, capital flight was more episodic than chronic during the period studied. Econometric analysis indicates a linkage between natural resource revenues and capital flight during the period. However, the linkage between inflows of new debt and capital flight is far stronger, as previous capital flight literature suggests.

Suggested Citation

  • Kazue Demachi, 2014. "Capital flight from resource rich developing countries," Economics Bulletin, AccessEcon, vol. 34(2), pages 734-744.
    • Handle: RePEc:ebl:ecbull:eb-13-00839
    as

    Download full text from publisher

    File URL: http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I2-P67.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. J. K. Boyce & L. Ndikumana, 2001. "Is Africa a Net Creditor? New Estimates of Capital Flight from Severely Indebted Sub-Saharan African Countries, 1970-96," Journal of Development Studies, Taylor & Francis Journals, vol. 38(2), pages 27-56.
    2. Leonce Ndikumana & James Boyce, 2011. "Capital flight from sub-Saharan Africa: linkages with external borrowing and policy options," International Review of Applied Economics, Taylor & Francis Journals, vol. 25(2), pages 149-170.
    3. Boyce, James K., 1992. "The revolving door? External debt and capital flight: A Philippine case study," World Development, Elsevier, vol. 20(3), pages 335-349, March.
    4. Sachs, J-D & Warner, A-M, 1995. "Natural Resource Abundance and Economic Growth," Papers 517a, Harvard - Institute for International Development.
    5. World Economic Forum & World Bank & African Development Bank, 2011. "The Africa Competitiveness Report 2011," World Bank Publications - Books, The World Bank Group, number 2319.
    6. World Bank, 2011. "World Development Report 2011 [Rapport sur le développement dans le monde 2011 : Conflits, sécurité et développement - Abrégé]," World Bank Publications - Books, The World Bank Group, number 4389.
    7. World Bank, 1993. "Global Economic Prospects and the Developing Countries 1993," World Bank Publications - Books, The World Bank Group, number 32388.
    8. kant, C., 1996. "Foreign Direct Investment and Capital Flight," Princeton Studies in International Economics 80, International Economics Section, Departement of Economics Princeton University,.
    9. Cuddington, John T., 1987. "Capital flight ," European Economic Review, Elsevier, vol. 31(1-2), pages 382-388.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ndikumana, Léonce & Sarr, Mare, 2019. "Capital flight, foreign direct investment and natural resources in Africa," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    2. Leonce Ndikumana & Mare Sarr, 2016. "Capital Flight and Foreign Direct Investment in Africa: An Investigation of the Role of Natural Resource Endowment," SALDRU Working Papers 167, Southern Africa Labour and Development Research Unit, University of Cape Town.
    3. Léonce Ndikumana & Mare Sarr, 2016. "Capital flight and foreign direct investment in Africa: An investigation of the role of natural resource endowment," WIDER Working Paper Series 058, World Institute for Development Economic Research (UNU-WIDER).
    4. Leonce Ndikumana & Mare Sarr, 2019. "Capital Flight, Foreign Direct Investment and Natural Resources in Africa," UMASS Amherst Economics Working Papers 2019-12, University of Massachusetts Amherst, Department of Economics.
    5. Dachraoui, Hajer & Sebri, Maamar, 2020. "Tunisia, natural resources, and capital flight," EconStor Preprints 218970, ZBW - Leibniz Information Centre for Economics.
    6. Léonce Ndikumana & Mare Sarr, 2016. "Capital flight and foreign direct investment in Africa: An investigation of the role of natural resource endowment," WIDER Working Paper Series wp-2016-58, World Institute for Development Economic Research (UNU-WIDER).
    7. Hajer Dachraoui & Maamar Sebri & Mahmoud M. A. Dwedar, 2021. "Natural Resources and Illicit Financial Flows from BRICS Countries," Biophysical Economics and Resource Quality, Springer, vol. 6(1), pages 1-13, March.
    8. Sebri, Maamar & Dachraoui, Hajer, 2020. "Resources bless BRICS," MPRA Paper 100423, University Library of Munich, Germany.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Demachi, Kazue, 2013. "Capital Flight and Transfer from Resource-Rich Developing Countries," MPRA Paper 50273, University Library of Munich, Germany.
    2. Yin‐Wong Cheung & XingWang Qian, 2010. "Capital Flight: China's Experience," Review of Development Economics, Wiley Blackwell, vol. 14(2), pages 227-247, May.
    3. Hajer Dachraoui & Mounir Smida & Maamar Sebri, 2020. "Role of capital flight as a driver of sovereign bond spreads in Latin American countries," International Economics, CEPII research center, issue 162, pages 15-33.
    4. Cheung, Yin-Wong & Steinkamp, Sven & Westermann, Frank, 2016. "China's capital flight: Pre- and post-crisis experiences," Journal of International Money and Finance, Elsevier, vol. 66(C), pages 88-112.
    5. Sebri, Maamar & Dachraoui, Hajer, 2020. "Resources bless BRICS," MPRA Paper 100423, University Library of Munich, Germany.
    6. Niels Hermes & Robert Lensink & Victor Murinde, 2002. "Flight Capital and its Reversal for Development Financing," WIDER Working Paper Series DP2002-99, World Institute for Development Economic Research (UNU-WIDER).
    7. Seung-Gwang Baek & Doo Yong Yang, 2010. "Institutional Quality, Captal Flight and Capital Flows," Korean Economic Review, Korean Economic Association, vol. 26, pages 121-155.
    8. Dachraoui, Hajer & Sebri, Maamar, 2020. "Tunisia, natural resources, and capital flight," EconStor Preprints 218970, ZBW - Leibniz Information Centre for Economics.
    9. Simplice A. Asongu, 2014. "Fighting African Capital Flight: Empirics on Benchmarking Policy Harmonization," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 11(1), pages 93-122, June.
    10. repec:dgr:rugsom:14031-eef is not listed on IDEAS
    11. Isaac Kwesi Ampah & Gabor David Kiss, 2019. "Economic Policy Implications of External Debt and Capital Flight in Sub-Saharan Africa’s Heavily Indebted Poor Countries," Society and Economy, Akadémiai Kiadó, Hungary, vol. 41(4), pages 523-542, December.
    12. Ndikumana, Leonce & Boyce, James K., 2003. "Public Debts and Private Assets: Explaining Capital Flight from Sub-Saharan African Countries," World Development, Elsevier, vol. 31(1), pages 107-130, January.
    13. Letete Emmanuel & Sarr Mare, 2017. "Working Paper 275 - Illicit Financial Flows and Political Institutions in Kenya," Working Paper Series 2392, African Development Bank.
    14. Leonce Ndikumana & Mare Sarr, 2019. "Capital Flight, Foreign Direct Investment and Natural Resources in Africa," UMASS Amherst Economics Working Papers 2019-12, University of Massachusetts Amherst, Department of Economics.
    15. Ndikumana, Léonce & Sarr, Mare, 2019. "Capital flight, foreign direct investment and natural resources in Africa," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    16. Léonce Ndikumana & Mare Sarr, 2016. "Capital flight and foreign direct investment in Africa: An investigation of the role of natural resource endowment," WIDER Working Paper Series wp-2016-58, World Institute for Development Economic Research (UNU-WIDER).
    17. Pacific K. T. Yapatake & Gabriella M-A. M Ngaba, 2019. "Capital Flight and Extent of Corruption control in the Least Corrupt African Countries: An Empirical assessment," CEREDEC Working Papers 19/002, Centre de Recherche pour le Développement Economique (CEREDEC).
    18. Valerie Cerra & Meenakshi Rishi & Sweta Saxena, 2008. "Robbing the Riches: Capital Flight, Institutions and Debt," Journal of Development Studies, Taylor & Francis Journals, vol. 44(8), pages 1190-1213.
    19. Hermes, Niels & Lensink, Robert, 2014. "Financial liberalization and capital flight," Research Report 14031-EEF, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
    20. NGUENA Christian-Lambert, 2014. "External Debt Origin, Capital Flight and Poverty Reduction in the Franc Zone: Does the Economic Consequences of Sino-African Relationship matter?," Working Papers of the African Governance and Development Institute. 14/016, African Governance and Development Institute..
    21. Cheung, Yin-Wong & Steinkamp, Sven & Westermann, Frank, 2020. "Capital flight to Germany: Two alternative measures," Journal of International Money and Finance, Elsevier, vol. 102(C).

    More about this item

    Keywords

    capital flight; natural resource; resource curse;
    All these keywords.

    JEL classification:

    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ebl:ecbull:eb-13-00839. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: John P. Conley (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.