IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/93540.html
   My bibliography  Save this paper

Stabilité du Currency Board et fuite des capitaux. Modèle théorique et application empirique au cas de Djibouti
[Currency Board stability and capital flight. Theoretical model and empirical application to the case of Djibouti]

Author

Listed:
  • Aman, Moustapha
  • Nenovsky, Nikolay

Abstract

The article explores the relationships between capital flight, the monetary regime instability and the general institutional stability of a country, with an empirical application to Djibouti. Are constructed variables for the capital flight, indicator for the instability of Currency Board and for the stability of institutional settings. This allows in a second time to test statistically and econometrically the impact of capital flight on Currency Board stability. The results show that the Currency Board in the case of Djibouti is entirely determined by capital movements (legal and illegal), unlike other Currency Boards where trade flows play a substantial role. The institutional framework and corrupt practices are also critical to understand the Djibouti monetary equilibrium and the perpetuation of the Currency Board in the presence of unofficial practices.

Suggested Citation

  • Aman, Moustapha & Nenovsky, Nikolay, 2015. "Stabilité du Currency Board et fuite des capitaux. Modèle théorique et application empirique au cas de Djibouti [Currency Board stability and capital flight. Theoretical model and empirical applica," MPRA Paper 93540, University Library of Munich, Germany, revised 2018.
    • Handle: RePEc:pra:mprapa:93540
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/93540/1/MPRA_paper_93540.pdf
    File Function: original version
    Download Restriction: no
    File URL: https://mpra.ub.uni-muenchen.de/93541/1/MPRA_paper_93540.pdf
    File Function: revised version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jeffrey D. Sachs & Andrew M. Warner, 1995. "Natural Resource Abundance and Economic Growth," NBER Working Papers 5398, National Bureau of Economic Research, Inc.
    2. Erbe, Susanne, 1985. "The flight of capital from developing countries," Intereconomics – Review of European Economic Policy (1966 - 1988), ZBW - Leibniz Information Centre for Economics, vol. 20(6), pages 268-275.
    3. Bernard Poirine, 1993. "Le développement par la rente dans les petites économies insulaires," Revue Économique, Programme National Persée, vol. 44(6), pages 1169-1199.
    4. Holger C. Wolf & Atish R. Ghosh & Helge Berger & Anne-Marie Gulde, 2008. "Currency Boards in Retrospect and Prospect," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262232650, April.
    5. 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.
    6. Nikolay Nenovsky, 1999. "Une économie en transition a-t-elle vraiment besoin d'une Banque Centrale? (la caisse d'émission en Bulgarie)," Post-Print halshs-00260095, HAL.
    7. Mahamoud, Ismael, 2008. "Contraintes institutionnelles et règlementaires et le secteur informel à Djibouti [Institutional and regulatory constraints and the informal sector in Djibouti]," MPRA Paper 48886, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    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. Mercy W. Mwangi & Amos G. Njuguna & George O. Achoki, 2019. "Relationship between corruption and capital flight in Kenya: 1998-2018," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 237-250, September.
    2. Dyendelayi, Isaac, 2000. "Analyse de Fuite des Capitaux en Afrique Subsaharienne : Cas de la République Démocratique du Congo (2000 – 2018) [Analysis of Capital Flight in Sub-Saharan Africa: Case of Democratic Republic of C," MPRA Paper 110335, University Library of Munich, Germany, revised 31 Dec 2018.
    3. Demachi, Kazue, 2013. "Capital Flight and Transfer from Resource-Rich Developing Countries," MPRA Paper 50273, University Library of Munich, Germany.
    4. Heydari, Hassan & Jariani, Farzaneh, 2020. "Analyzing Effective Factors of Capital Outflow from the Middle East and North African Countries (MENA)," MPRA Paper 104547, University Library of Munich, Germany.
    5. Kazue Demachi, 2014. "Capital flight from resource rich developing countries," Economics Bulletin, AccessEcon, vol. 34(2), pages 734-744.
    6. Liew, Siew-Ling, 2016. "Review on Determinants of Capital Flight," MPRA Paper 70445, University Library of Munich, Germany.
    7. Aman, Moustapha & Nenovsky, Nikolay, 2014. "Géopolitique du régime monétaire. Expliquer la longévité du Currency Board de Djibouti [Geopolitics of Monetaray Regime. Expaning the longevity of Currency Board in Djibouti]," MPRA Paper 80089, University Library of Munich, Germany, revised 2016.
    8. 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.
    9. Hans Tino Ayamena Mpenya & Clarisse Metseyem & Boniface Ngah Epo, 2016. "Natural Resources and Capital Flight in Cameroon," African Development Review, African Development Bank, vol. 28(S1), pages 88-99, April.
    10. 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).
    11. Guy Michaels, 2011. "The Long Term Consequences of Resource‐Based Specialisation," Economic Journal, Royal Economic Society, vol. 121(551), pages 31-57, March.
    12. Simplice A. Asongu, 2014. "Knowledge Economy and Financial Sector Competition in African Countries," African Development Review, African Development Bank, vol. 26(2), pages 333-346, June.
    13. Thorvaldur Gylfason, 2019. "Inequality Undermines Democracy and Growth," CESifo Working Paper Series 7486, CESifo.
    14. Ftiti, Zied & Aguir, Abdelkader & Smida, Mounir, 2017. "Time-inconsistency and expansionary business cycle theories: What does matter for the central bank independence–inflation relationship?," Economic Modelling, Elsevier, vol. 67(C), pages 215-227.
    15. T.S. Veeman & J. Politylo, 2003. "The Role of Institutions and Policy in Enhancing Sustainable Development and Conserving Natural Capital," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 5(3), pages 317-332, September.
    16. Brahmbhatt, Milan & Canuto, Otaviano & Vostroknutova, Ekaterina, 2010. "Dealing with Dutch Disease," World Bank - Economic Premise, The World Bank, issue 16, pages 1-7, June.
    17. MENNA, Khaled, 2016. "الاقتصاد السياسي للإصلاحات في الدول الغنية بالموارد الطبيعية: دروس مستقاة من التجربة الجزائرية [The Political Economy of Reforms in Rich Natural Resources Countries: Lessons Driven from the Algeria," MPRA Paper 85385, University Library of Munich, Germany.
    18. Ernest Aryeetey & Ishmael Ackah, 2018. "The boom, the bust, and the dynamics of oil resource management in Ghana," WIDER Working Paper Series wp-2018-89, World Institute for Development Economic Research (UNU-WIDER).
    19. Rosen Azad Chowdhury & Dilshad Jahan & Tapas Mishra & Mamata Parhi, 2023. "A Quality Dimension? A Re-appraisal of Financial Development and Economic Growth Nexus in a Quality-Quantity Setting," Working Papers 2023-02, Swansea University, School of Management.
    20. Dixon, Peter B. & Rimmer, Maureen & McDonald, Daina & McDaniel, Christine A. & Balistreri, Edward J. & Johnson, Kyle & Wong, Eina V., 2002. "USAGE: Data and Parameters," Conference papers 331021, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    capital flight; Currency Board; monetary regime instability; Djibouti;
    All these keywords.

    JEL classification:

    • E5 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit
    • F2 - International Economics - - International Factor Movements and International Business

    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:pra:mprapa:93540. 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: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    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.