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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
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    File URL: http://www.accessecon.com/Pubs/EB/2014/Volume34/EB-14-V34-I2-P67.pdf
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    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.
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    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, December.
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    8. kant, C., 1996. "Foreign Direct Investment and Capital Flight," Princeton Studies in International Economics 80, International Economics Section, Departement of Economics Princeton University,.
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    Citations

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    Cited by:

    1. 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.
    2. 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).
    3. Sebri, Maamar & Dachraoui, Hajer, 2020. "Resources bless BRICS," MPRA Paper 100423, University Library of Munich, Germany.
    4. Ndikumana, Léonce & Sarr, Mare, 2019. "Capital flight, foreign direct investment and natural resources in Africa," Resources Policy, Elsevier, vol. 63(C), pages 1-1.
    5. 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).
    6. 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.
    7. 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.
    8. Dachraoui, Hajer & Sebri, Maamar, 2020. "Tunisia, natural resources, and capital flight," EconStor Preprints 218970, ZBW - Leibniz Information Centre for Economics.

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    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

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