Vol. 4 No. 1 (2024)
Articles

CAPITAL FLIGHT AND POVERTY RATE IN NIGERIA

MAKWE, EMMANUEL UZOMA (Ph.D)
sylvacrown@yahoo.com. 08036713010. DEPARTMENT OF FINANCE AND BANKING, FACULTY OF MANAGEMENT SCIENCES, UNIVERSITY OF PORT HARCOURT, RIVERS STATE, NIGERIA.
ANIGBORO, GODWIN SIMEON (Ph.D)
08038762082. DEPARTMENT OF ECONOMICS, SCHOOL OF GRADUATE STUDIES, FACULTY OF SOCIAL SCIENCES, UNIVERSITY OF PORT HARCOURT, RIVERS STATE, NIGERIA.

Published 2024-01-10

Keywords

  • Capital Flight,
  • Poverty Rate,
  • Foreign Direct Investment Outflows,
  • External Reserves,
  • External Debt,
  • Capital,
  • Financial Account
  • ...More
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How to Cite

MAKWE, EMMANUEL UZOMA, & ANIGBORO, GODWIN SIMEON. (2024). CAPITAL FLIGHT AND POVERTY RATE IN NIGERIA. African Journal of Business and Economic Development, 4(1), 1-24. https://www.openjournals.ijaar.org/index.php/ajbed/article/view/366

How to Cite

MAKWE, EMMANUEL UZOMA, & ANIGBORO, GODWIN SIMEON. (2024). CAPITAL FLIGHT AND POVERTY RATE IN NIGERIA. African Journal of Business and Economic Development, 4(1), 1-24. https://www.openjournals.ijaar.org/index.php/ajbed/article/view/366

Abstract

This study examined Capital Flight and poverty rate in Nigeria. Capital Flight was proxied by foreign direct investment outflows, external debt servicing, external reserves and capital and financial account deficits. Hypotheses that guided the study were formulated in line with the study objectives and relevant literature were reviewed and evaluated. Relevant data were extracted from the annual Statistical Bulletin of the Central Bank of Nigeria and the National Bureau of Statistics. Unit root test was conducted using Augmented Dickey Fuller method which revealed that the variables were integrated at level and first difference necessitating the use of autoregressive distributive lag/bond test to explore the long run relationship existing among the variables in the model and the result showed that the variables in the model were co-integrated thus we proceeded in evaluating the long run as well as the co-integrating form in the model. From the result of the various tests, it was revealed that while some of the outcomes conformed to apriori expectations, others did not conform to apriori expectations. Based on the findings from the analysis, the study recommended amongst others, that external debt acquired should be judiciously used for infrastructural development that would encourage investments which would ultimately bring about economic growth as well as reducing the rate of poverty in Nigeria.

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