Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 17, 2020 erstellt
Description:
The study examines the use of governance tools to fight capital flight by reducing the capitalflight trap. Two overarching policy syndromes are addressed in the study. It first assesseswhether governance is an effective deterrent to the capital flight trap in Africa, before examin ing what thresholds of government quality are required to fight the capital flight trap in thecontinent. The following findings are established. Evidence of a capital flight trap is apparentbecause past values of capital flight have a positive effect on future values of capital flight. Thenet effects from interactions of the capital flight trap with political stability, regulation quality,economic governance and corruption-control on capital flight are positive. The critical masses atwhich ‘voice and accountability’ and regulation quality can complement the capital flight trapto reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best perform ing countries. Policy implications are discussed