THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA
The study investigated the relationship between capital flight and poverty in Nigeria. The time series data spanning from 1986 to 2014 was analyzed using Johansen co-integration test and error correction model. The Johansen co-integration results revealed that a long run equilibrium relationship exi...
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| Format: | Article |
| Language: | English |
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University of Agricultural Sciences and Veterinary Medicine, Bucharest
2016-01-01
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| Series: | Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| Online Access: | https://managementjournal.usamv.ro/pdf/vol.16_3/Art31.pdf |
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| author | Kingsley Onyekachi ONYELE Eberechi Bernadine NWOKOCHA |
| author_facet | Kingsley Onyekachi ONYELE Eberechi Bernadine NWOKOCHA |
| author_sort | Kingsley Onyekachi ONYELE |
| collection | DOAJ |
| description | The study investigated the relationship between capital flight and poverty in Nigeria. The time series data spanning from 1986 to 2014 was analyzed using Johansen co-integration test and error correction model. The Johansen co-integration results revealed that a long run equilibrium relationship exist between capital flight and poverty (proxied by discomfort index) in Nigeria. Similarly, the error correction term showed that the present value of discomfort index (a proxy for poverty) adjusted rapidly to changes in capital flight, real exchange rate, real gross domestic product growth rate and adult literacy rate by approximately 66.82 percent in the long run. On the other hand, capital flight had a positive relationship with discomfort index (a proxy for poverty). Similarly, real gross domestic product (GDP) growth rate and adult literacy rate related positively with discomfort index. Among other things, it was recommended inter alia that government should lift the stringent penalties due to money launderers in order to encourage repatriation of their investments, coupled with strict policies aimed at preventing and checking further siphoning of national wealth. |
| format | Article |
| id | doaj-art-73bd3efae2f240828eb1d05268f0e3a2 |
| institution | Kabale University |
| issn | 2284-7995 2285-3952 |
| language | English |
| publishDate | 2016-01-01 |
| publisher | University of Agricultural Sciences and Veterinary Medicine, Bucharest |
| record_format | Article |
| series | Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| spelling | doaj-art-73bd3efae2f240828eb1d05268f0e3a22025-08-20T03:45:26ZengUniversity of Agricultural Sciences and Veterinary Medicine, BucharestScientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development2284-79952285-39522016-01-011632252363355THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIAKingsley Onyekachi ONYELEEberechi Bernadine NWOKOCHAThe study investigated the relationship between capital flight and poverty in Nigeria. The time series data spanning from 1986 to 2014 was analyzed using Johansen co-integration test and error correction model. The Johansen co-integration results revealed that a long run equilibrium relationship exist between capital flight and poverty (proxied by discomfort index) in Nigeria. Similarly, the error correction term showed that the present value of discomfort index (a proxy for poverty) adjusted rapidly to changes in capital flight, real exchange rate, real gross domestic product growth rate and adult literacy rate by approximately 66.82 percent in the long run. On the other hand, capital flight had a positive relationship with discomfort index (a proxy for poverty). Similarly, real gross domestic product (GDP) growth rate and adult literacy rate related positively with discomfort index. Among other things, it was recommended inter alia that government should lift the stringent penalties due to money launderers in order to encourage repatriation of their investments, coupled with strict policies aimed at preventing and checking further siphoning of national wealth.https://managementjournal.usamv.ro/pdf/vol.16_3/Art31.pdf |
| spellingShingle | Kingsley Onyekachi ONYELE Eberechi Bernadine NWOKOCHA THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA Scientific Papers Series : Management, Economic Engineering in Agriculture and Rural Development |
| title | THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA |
| title_full | THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA |
| title_fullStr | THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA |
| title_full_unstemmed | THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA |
| title_short | THE RELATIONSHIP BETWEEN CAPITAL FLIGHT AND POVERTY: THE CASE OF NIGERIA |
| title_sort | relationship between capital flight and poverty the case of nigeria |
| url | https://managementjournal.usamv.ro/pdf/vol.16_3/Art31.pdf |
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