IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 4 NO. 2 2018

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Capital Flight and the Growth of Nigerian Economy: An Autoregressive Distributed Lag (ARDL) Modeling.

Egbuwalo Moses Orimolade & Abere Benjamin Olusola

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Abstract

The paper investigates empirically the impact of capital flight on the growth of Nigerian economy. To achieve this task a model of GDP was specified explaining capital flight from Nigeria in line with the World Bank residual approach to the measurement of capital flight. The Autoregressive Distributed Lag approach top cointegration was used to analyse both short and long run relationship between variables. Research findings reveal that there is Long run negative relationship between GDP and all the capital flight variables in this study. We therefore recommend a favourable economic policy to take care of inflation, poor and inadequate infrastructural facilities high rate of taxation, poor treatment of domestic capital ad helpless domestic market situations, among others so as to discourage capital flight from Nigerian economy.

keywords:

Capital Flight, Economic Growth, External Debt, Foreign Direct Investment, Auto Regressive Distributed Lag.

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