Capital Flight and Economic Growth in Nigeria (1981 – 2017)

Abstract

This study examined the impact of capital flight on economic growth in Nigeria from 1981 to 2017. Time series data on capital flight, external reserve, external debts, and real gross domestic product were employed in the study, while the Ordinary Least  Squares  estimation technique was adopted in analyzing the data of the study. The Johansen co- integration and the error correction mechanism were conducted. Evidence from the  finding of the study revealed that there exist co-integration among the variables of the study, and that capital flight has negative impact on the economic growth of Nigerian. Based on these findings, the study recommended that government should provide enabling investment climate to encourage investments and discourage capital flight from Nigeria.