The AGDI has published substantially in fulfillment of its mission statement of contributing to knowledge towards African development:
IDEAS
http://ideas.repec.org/d/agdiycm.html
ECONSTOR
https://www.econstor.eu/dspace/escollectionhome/10419/123513
Publications List
2020 |
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1. | Asongu, Joseph Nnanna Simplice A Transnational Corporations Review, 2020. Abstract | Links | BibTeX | Tags: Capital flight, governance @article{Asongu_60, author = {Joseph Nnanna Simplice A. Asongu}, url = {https://www.tandfonline.com/doi/full/10.1080/19186444.2020.1771123}, doi = {10.1080/19186444.2020.1771123}, year = {2020}, date = {2020-06-17}, journal = {Transnational Corporations Review}, abstract = {The study examines the use of governance tools to fight capital flight by reducing the capital flight trap. Two overarching policy syndromes are addressed in the study. It first assesses whether governance is an effective deterrent to the capital flight trap in Africa, before examining what thresholds of government quality are required to fight the capital flight trap in the continent. The following findings are established. Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. The net 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 at which ‘voice and accountability’ and regulation quality can complement the capital flight trap to reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best performing countries. Policy implications are discussed.}, keywords = {Capital flight, governance}, pubstate = {published}, tppubtype = {article} } The study examines the use of governance tools to fight capital flight by reducing the capital flight trap. Two overarching policy syndromes are addressed in the study. It first assesses whether governance is an effective deterrent to the capital flight trap in Africa, before examining what thresholds of government quality are required to fight the capital flight trap in the continent. The following findings are established. Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. The net 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 at which ‘voice and accountability’ and regulation quality can complement the capital flight trap to reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best performing countries. Policy implications are discussed. |
2. | A., Uduji Okolo-Obasi Asongu J I E N S Financial Innovation, 6 (14), pp. 1-21, 2020. Abstract | Links | BibTeX | Tags: Africa, Capital flight @article{Asongu_102, author = {Uduji Okolo-Obasi J I E N Asongu S. A.}, url = {https://jfin-swufe.springeropen.com/articles/10.1186/s40854-020-00179-0}, doi = {10.1186/s40854-020-00179-0}, year = {2020}, date = {2020-02-18}, journal = {Financial Innovation}, volume = {6}, number = {14}, pages = {1-21}, abstract = {This study provides a harmonization framework for common capital flight policies in Africa. It builds on evidence of persistent extreme poverty in the continent to assess how common measures can be adopted by sampled countries on one cause of extreme poverty: capital flight. The dataset is sub-divided into fundamental characteristics of African capital flight based on income levels, legal foundations, natural resources, political stability, regional proximity, and religious domination. The main finding shows that from a projection date of 2010, a feasible timeframe for harmonizing policies is between 2016 and 2023. This timeframe coincides with the beginning of the post-2015 agenda on sustainable development goals.}, keywords = {Africa, Capital flight}, pubstate = {published}, tppubtype = {article} } This study provides a harmonization framework for common capital flight policies in Africa. It builds on evidence of persistent extreme poverty in the continent to assess how common measures can be adopted by sampled countries on one cause of extreme poverty: capital flight. The dataset is sub-divided into fundamental characteristics of African capital flight based on income levels, legal foundations, natural resources, political stability, regional proximity, and religious domination. The main finding shows that from a projection date of 2010, a feasible timeframe for harmonizing policies is between 2016 and 2023. This timeframe coincides with the beginning of the post-2015 agenda on sustainable development goals. |
2019 |
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3. | Asongu, Nicholas Odhiambo Simplice M A Journal of Economic Structures, 2019. Abstract | Links | BibTeX | Tags: Capital flight, governance, industrialisation @article{Asongu_143, author = {Nicholas Odhiambo M Simplice A. Asongu}, url = {https://journalofeconomicstructures.springeropen.com/articles/10.1186/s40008-019-0170-2}, doi = {10.1186/s40008-019-0170-2}, year = {2019}, date = {2019-11-06}, journal = {Journal of Economic Structures}, abstract = {The study examines the role of governance in modulating the effect of capital flight on industrialisation in Africa. The empirical evidence is based on Generalised Method of Moments and governance is bundled by principal component analysis, namely (i) political governance from political stability and “voice and accountability”; (ii) economic governance from government effectiveness and regulation quality; and (iii) institutional governance from corruption-control and the rule of law. First, governance increases industrialisation whereas capital flight has the opposite effect; and second, governance does not significantly mitigate the negative effect of capital flight on industrialisation. Policy implications are discussed.}, keywords = {Capital flight, governance, industrialisation}, pubstate = {published}, tppubtype = {article} } The study examines the role of governance in modulating the effect of capital flight on industrialisation in Africa. The empirical evidence is based on Generalised Method of Moments and governance is bundled by principal component analysis, namely (i) political governance from political stability and “voice and accountability”; (ii) economic governance from government effectiveness and regulation quality; and (iii) institutional governance from corruption-control and the rule of law. First, governance increases industrialisation whereas capital flight has the opposite effect; and second, governance does not significantly mitigate the negative effect of capital flight on industrialisation. Policy implications are discussed. |
4. | Nting, Evans Osabuohien Simplice Asongu Rexon S A T Journal of Industry, Competition and Trade, 2019. Abstract | Links | BibTeX | Tags: Africa, Capital flight, terrorism @article{Asongu_241, author = {Evans Osabuohien S Simplice A. Asongu Rexon T. Nting}, url = {https://link.springer.com/article/10.1007/s10842-019-00303-6}, doi = {10.1007/s10842-019-00303-6}, year = {2019}, date = {2019-04-17}, journal = {Journal of Industry, Competition and Trade}, abstract = {This inquiry assesses if terrorism sustains the capital flight trap and whether the relationship is affected by varying the levels of governance and globalisation. The empirical evidence is based on interactive generalised method of moments with data from 37 African countries for the period 1996–2010. The following are established: (1) Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. (2) Terrorism sustains the positive effect of the capital flight trap on capital flight. (3) For the most part (especially with regard to political governance), terrorism sustains the addiction to capital flight in above-median governance sub-samples. Policy implications are discussed.}, keywords = {Africa, Capital flight, terrorism}, pubstate = {published}, tppubtype = {article} } This inquiry assesses if terrorism sustains the capital flight trap and whether the relationship is affected by varying the levels of governance and globalisation. The empirical evidence is based on interactive generalised method of moments with data from 37 African countries for the period 1996–2010. The following are established: (1) Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. (2) Terrorism sustains the positive effect of the capital flight trap on capital flight. (3) For the most part (especially with regard to political governance), terrorism sustains the addiction to capital flight in above-median governance sub-samples. Policy implications are discussed. |
5. | Nting, Evans Osabuohien Simplice Asongu Rexon S A T 2019. Abstract | Links | BibTeX | Tags: Africa, Capital flight, terrorism @unpublished{Asongu_247, author = {Evans Osabuohien S Simplice A. Asongu Rexon T. Nting}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/How-terrorism-sustains-the-addiction-to-capital-flight-in-Africa.pdf}, year = {2019}, date = {2019-04-05}, abstract = {This inquiry assesses if terrorism sustains the capital flight trap and whether the relationship is affected by varying the levels of governance and globalisation. The empirical evidence is based on interactive Generalised Method of Moments with data from 37 African countries for the period 1996-2010. The followings are established. (1) Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. (2) Terrorism sustains the positive effect of the capital flight trap on capital flight. (3) For the most part (especially with regard to political governance), terrorism sustains the addiction to capital flight in above-median governance sub-samples. Policy implications are discussed.}, keywords = {Africa, Capital flight, terrorism}, pubstate = {published}, tppubtype = {unpublished} } This inquiry assesses if terrorism sustains the capital flight trap and whether the relationship is affected by varying the levels of governance and globalisation. The empirical evidence is based on interactive Generalised Method of Moments with data from 37 African countries for the period 1996-2010. The followings are established. (1) Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. (2) Terrorism sustains the positive effect of the capital flight trap on capital flight. (3) For the most part (especially with regard to political governance), terrorism sustains the addiction to capital flight in above-median governance sub-samples. Policy implications are discussed. |
2016 |
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6. | A, Nwachukwu Asongu J C S European Journal of Comparative Economics, 13 (2), pp. 221-246, 2016. Abstract | Links | BibTeX | Tags: Capital flight, Development, Foreign aid, Inequality, Piketty @article{Asongu_507, author = {Nwachukwu J C Asongu S. A}, url = {http://eaces.liuc.it/18242979201602/182429792016130204.pdf}, year = {2016}, date = {2016-12-23}, journal = {European Journal of Comparative Economics}, volume = {13}, number = {2}, pages = {221-246}, abstract = {An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed.}, keywords = {Capital flight, Development, Foreign aid, Inequality, Piketty}, pubstate = {published}, tppubtype = {article} } An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed. |
7. | A, Nwachukwu Asongu J C S 2016. Abstract | Links | BibTeX | Tags: Capital flight, Development, Foreign aid, Inequality, Piketty @workingpaper{Asongu_522, author = {Nwachukwu J C Asongu S. A}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Rational-Asymmetric-Development-Piketty-and-Poverty-in-Africa.pdf}, year = {2016}, date = {2016-10-12}, abstract = {An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed.}, keywords = {Capital flight, Development, Foreign aid, Inequality, Piketty}, pubstate = {published}, tppubtype = {workingpaper} } An April 2015 World Bank report on the Millennium Development Goal poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of Africa. This study extends the implications of Thomas Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) and Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan and Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return on capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that when the return on political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and Africa may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a comprehensive commitment to fighting illicit capital flight based on this. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed. |
8. | A., Le Roux Tchamyou Asongu S S V S 2016. Abstract | Links | BibTeX | Tags: Capital flight, Corruption, Development, External Debts, Poverty @workingpaper{Asongu_532, author = {Le Roux Tchamyou S S V Asongu S. A.}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Unjust-Enrichment-from-Official-Corruption-in-Africa.pdf}, year = {2016}, date = {2016-09-17}, abstract = {A 2015 World Bank report on the achievement of Millennium Development Goals (MDGs) revealed that since the 1990s, extreme poverty has been decreasing in all regions of the world with the exception of Africa where about 50 percent of countries in Sub-Saharan Africa did not achieve the MDG extreme poverty target despite the sub-region enjoying more than two decades of GDP growth resurgence. The purpose of this chapter is twofold. First to understand the interconnections between the large pool of capital transferred to the OECD countries and the corrupt deposits of stolen public funds. Second, to illustrate how such diversion of funds overseas are related to the spread of poverty in the African economies. We enunciate a ‘poverty multiplier theory’ and propose a model for its application within an African context. The ‘poverty multiplier theory’ postulates that: (i) one unit of currency deposited abroad represents a loss in financial development at home (ii) a fraction of the unit currency placed in foreign bank accounts is redirected to the domestic economy in the form of external debt. This external debt is further siphoned overseas through interest and loan principal repayment. Policy implications of these processes are discussed.}, keywords = {Capital flight, Corruption, Development, External Debts, Poverty}, pubstate = {published}, tppubtype = {workingpaper} } A 2015 World Bank report on the achievement of Millennium Development Goals (MDGs) revealed that since the 1990s, extreme poverty has been decreasing in all regions of the world with the exception of Africa where about 50 percent of countries in Sub-Saharan Africa did not achieve the MDG extreme poverty target despite the sub-region enjoying more than two decades of GDP growth resurgence. The purpose of this chapter is twofold. First to understand the interconnections between the large pool of capital transferred to the OECD countries and the corrupt deposits of stolen public funds. Second, to illustrate how such diversion of funds overseas are related to the spread of poverty in the African economies. We enunciate a ‘poverty multiplier theory’ and propose a model for its application within an African context. The ‘poverty multiplier theory’ postulates that: (i) one unit of currency deposited abroad represents a loss in financial development at home (ii) a fraction of the unit currency placed in foreign bank accounts is redirected to the domestic economy in the form of external debt. This external debt is further siphoned overseas through interest and loan principal repayment. Policy implications of these processes are discussed. |
2015 |
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9. | Efobi, Simplice Asongu Uchenna A How Terrorism Explains Capital Flight from Africa 2015. Abstract | Links | BibTeX | Tags: Africa, Capital flight, terrorism @workingpaper{Asongu2015bp, title = {How Terrorism Explains Capital Flight from Africa}, author = {Simplice Asongu A Uchenna Efobi}, editor = {African 2015 Governance and Development Institute WP/15/034}, url = {2015 African Governance and Development Institute WP/15/034}, year = {2015}, date = {2015-09-01}, abstract = {We assess the effects of terrorism on capital flight in a panel of 29 African countries for which data is available for the period 1987-2008. The terrorism dynamics entail domestic, transnational, unclear and total terrorisms. The empirical evidence is based on Generalised Method of Moments (GMM) with forward orthogonal deviations and Quantile regressions (QR). The following findings are established. First, for GMM, domestic, unclear and total terrorisms consistently increase capital flight, with the magnitude relative higher from unclear terrorism. Second, for QR: (i) the effect of transnational terrorism is now positively significant in the top quantiles (0.75th and 0.90th) of the capital flight distribution, (ii) domestic and total terrorisms are also significant in the top quantiles and (iii) unclear terrorism is significant in the 0.10th and 0.75th quantiles. Policy implications are discussed.}, keywords = {Africa, Capital flight, terrorism}, pubstate = {published}, tppubtype = {workingpaper} } We assess the effects of terrorism on capital flight in a panel of 29 African countries for which data is available for the period 1987-2008. The terrorism dynamics entail domestic, transnational, unclear and total terrorisms. The empirical evidence is based on Generalised Method of Moments (GMM) with forward orthogonal deviations and Quantile regressions (QR). The following findings are established. First, for GMM, domestic, unclear and total terrorisms consistently increase capital flight, with the magnitude relative higher from unclear terrorism. Second, for QR: (i) the effect of transnational terrorism is now positively significant in the top quantiles (0.75th and 0.90th) of the capital flight distribution, (ii) domestic and total terrorisms are also significant in the top quantiles and (iii) unclear terrorism is significant in the 0.10th and 0.75th quantiles. Policy implications are discussed. |
10. | Asongu, Simplice A Rational Asymmetric Development, Piketty and the Spirit of Poverty in Africa 2015. Abstract | Links | BibTeX | Tags: Capital flight, Development, Foreign aid, Inequality, Piketty @workingpaper{Asongu2015b_35, title = {Rational Asymmetric Development, Piketty and the Spirit of Poverty in Africa}, author = {Simplice A Asongu}, editor = {African 2015 Governance and Development Institute WP/15/006}, url = {http://www.afridev.org/RePEc/agd/agd-wpaper/Rational-Asymmetric-Development-Piketty-and-the-Spirit-of-Poverty-in-Africa.pdf}, year = {2015}, date = {2015-03-01}, abstract = {The study extends the implications of Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) & Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan & Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return of capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that, when the return of political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and African may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a holistic commitment to fighting illicit capital flight based on automatic exchange of bank information. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed.}, keywords = {Capital flight, Development, Foreign aid, Inequality, Piketty}, pubstate = {published}, tppubtype = {workingpaper} } The study extends the implications of Piketty’s celebrated literature from developed countries to the nexus between developed nations and African countries by building on responses from Rogoff (2014) & Stiglitz (2014), post Washington Consensus paradigms and underpinnings from Solow-Swan & Boyce-Fofack-Ndikumana. The central argument presented is that the inequality problem is at the heart of rational asymmetric development between rich and poor countries. Piketty has shown that inequality increases when the return of capital is higher than the growth rate, because the poor cannot catch-up with the rich. We argue that, when the return of political economy (or capitalism-fuelled illicit capital flight) is higher than the growth rate in African countries, inequality in development increases and African may not catch-up with the developed world. As an ideal solution, Piketty has proposed progressive income taxation based on automatic exchange of bank information. The ideal analogy proposed in tackling the spirit of African poverty is a holistic commitment to fighting illicit capital flight based on automatic exchange of bank information. Hence, contrary to theoretical underpinnings of exogenous growth models, catch-up may not be so apparent. Implications for the corresponding upward bias in endogenous development and catch-up literature are discussed. |