Capital Flight and Economic Growth in Nigeria : An Empirical Analysis

Abstract

ABSTRACT In this study we examined with the use of Unit Root, Co-integration and Ordinary Least Square (OLS) method, the impact of Capital Flight on economic growth in Nigeria between 1981 and 2016. Asides capital flight (CAF), Gross Fixed Capital Formation (GFCF), Exchange Rate (EXR), Inflation (INF) and Terms of Trade (TOT) are the other independent variables used. The finding is that apart from the GFCF, the rest of the variables had negative impact on the country's GDP growth during the period under consideration. It is the opinion of the paper therefore, that the government should put in place appropriate policy framework and its implementation to ensure high productivity in the economy. This will not only guarantee availability of enough goods for foreign exchange earnings when exported, reduce inflation in the economy, encourage exports of excess produced goods rather than importing to complement inadequate produced goods. With this, the economy rather than fostering capital flight that leads to low GDP growth will do otherwise. Original Source URL : https://airccse.com/ijhas/papers/3318ijhas01.pdf for more details : https://airccse.com/ijhas/current.html#may