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Illicit Financial Flows and Financing of Basic Social Services: A Comparative Study of Opportunity Cost Between CAEMC and WAEMU Zone

In: Financing Africa’s Development

Author

Listed:
  • François Colin Bouhem

    (University of Dschang, LAREA-University of Yaounde II)

  • Daniel Gbetnkom

    (LAREA-University of Yaounde II)

Abstract

This study aims to compare the opportunity cost of illicit financial flows in terms of financing basic social services in CAEMC and WAEMU zone. For this, we use the ICOR simulation method based on the Harrod and Domar model and recently applied by Nkurunziza (2015) and Moulemvo (African Economic Review 28:113–123, 2016). The results of these simulations show that based on the calculated ICOR coefficient, we estimate the loss of GDP in CAEMC at 18 billion USD and that of WAEMU at 13 billion USD. This loss of GDP in the victim countries would make it possible to allocate additional resources for public social spending.

Suggested Citation

  • François Colin Bouhem & Daniel Gbetnkom, 2020. "Illicit Financial Flows and Financing of Basic Social Services: A Comparative Study of Opportunity Cost Between CAEMC and WAEMU Zone," Advances in African Economic, Social and Political Development, in: Diery Seck (ed.), Financing Africa’s Development, pages 179-190, Springer.
    • Handle: RePEc:spr:aaechp:978-3-030-46482-0_10
    DOI: 10.1007/978-3-030-46482-0_10
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    More about this item

    Keywords

    Basic social services; CAEMC; ICOR; Illicit financial flows; WAEMU;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development

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