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Determinants of Capital Flight in Nigeria

Determinants of Capital Flight in Nigeria

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Reference ID: PS-7058-TM

DEDICATION

This research material titled “Determinants of Capital Flight in Nigeria” is dedicated to God for his enabling grace, and to all computer enthusiasts who contributed to make life a pleasant experience during my research documentation.

ACKNOWLEDGEMENT

I extend my sincere gratitude to all those who contributed to the completion of this project. Special thanks to my Supervisor (Name of your Supervisor), the Head of Department (Name of your HOD), the Lecturers in the department of Sociology, Book Authors and Profound Scholars of existing or related project material on “Determinants of Capital Flight in Nigeria” for their invaluable guidance, support, and expertise throughout the journey.

I am also grateful to your study area (mention any funding organizations, if applicable) for their financial assistance. This research would not have been possible without the encouragement and assistance of some stakeholders (mention any mentors, teachers, or colleagues). Additionally, I would like to acknowledge the understanding and patience of my family and friends during this endeavor. Your unwavering support has been a constant source of motivation. Thank you all for being part of this meaningful endeavor.

TABLE OF CONTENTS

PRELIMINARY PAGES


CHAPTER ONE

INTRODUCTION


    CHAPTER TWO

    LITERATURE REVIEW

    • 2.1 Introduction
    • 2.2 Conceptual Review
    • 2.3 Theoretical Framework
    • 2.4 Empirical Studies

    CHAPTER THREE

    RESEARCH METHODOLOGY

    • 3.1 Introduction
    • 3.2 Research Design
    • 3.3 Population of Study
    • 3.4 Sampling and Sampling Technique
    • 3.5 Validation of Research Instrument
    • 3.6 Method of Data Collection
    • 3.7 Method of Data Analysis
    • 3.8 Questionnaire Administration
    • 3.9 Ethical Consideration
    • 3.10 Statistical Analysis

    CHAPTER FOUR

    DATA ANALYSIS, RESULT AND DISCUSSION

    • 4.1 Introduction
    • 4.2 Presentation and Analysis of Data
    • 4.3 Re-statement of Research Questions
    • 4.4 Test of Hypotheses
    • 4.5 Discussion of Findings

    CHAPTER FIVE

    SUMMARY, CONCLUSION AND RECOMMENDATION

    • 5.1 Introduction
    • 5.2 Summary of Findings
    • 5.3 Conclusion
    • 5.4 Recommendation
    • 5.5 Suggestion for Further Study

    REFERENCES

    APPENDIX A - “QUESTIONNAIRE”

    ABSTRACT

    The verity that capital formation is a key to economic development is incontrovertible. Yet capital scarcity is norm in most developing nations like Nigeria. With this in view, this study examines the Determinants of Capital Flight in Nigeria. In executing this crucial study, annual time series data, between 1980 and 2014 is used and error correction model (ECM) is employed after Augmented Dickey Fuller (ADF) unit root tests as well Johansen cointegration analysis has been applied to the variables.

    In identifying the Determinants of Capital Flight in Nigeria, the study employs the Residual method of measuring capital flight. Of the six variables modeled as the Determinants of Capital Flight in Nigeria; exchange rate, real interest rate, external debt stock, economic openness and political instability are found to account for capital flight. Real gross domestic product is found not to be a significant determinant of capital flight in the country. The study recommends policy options aimed at abating capital flight as well as raising investment levels in the country.


    Determinants of Capital Flight in Nigeria

    CHAPTER ONE


    Introduction

    1.1 Background to the Study

    According to (Ajilore, 2010) capital flight refers to any illicit movement of capital away from a domestic to a foreign economy. (Ndikumana and Boyce, 2002) also defined capital flight as residents’ capital outflows, excluding recorded investment abroad.(Schneider , 2003) defines it as that part of outflow of resident capital that is motivated by economic and political uncertainty. This implies that such political uncertainty will involve likely change of government or governmental policies as denoted by country instability and all forms of minor and major changes in the political circumstance of the country.

    According to (Noor et al,2015), the movement of capital from domestic to foreign economy could be normal or economically good if it is of capital export or foreign direct investment. These flows of capital abroad, which are subjected to regulation and do not endanger national economy, would foster economic growth of a nation. However, the illicit movement of capital away from domestic to foreign economy would worsen the capital scarcity problem especially in emerging economies; thus, contributing to economic contraction as well as collapse of the financial markets.

    CHAPTER TWO

    2.0 Literature Review

    2.1 Introduction

    This chapter focuses on the review of related literature. A literature review includes the current knowledge as well as theoretical and methodological contributions to a particular topic. It documents the state of the art with respect to the topic you are writing. It surveys the literature in the topic selected. In this research work the literature review includes the …

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