Orkoh, Emmanuel and Claassen, Carike and Blaauw, Phillip Frederick (2017): Corruption, political stability and illicit financial outflows in Sub-Saharan Africa.
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Abstract
This paper examines the effect of corruption control and political stability on illicit financial outflows in Sub-Saharan Africa. We use a balanced panel data from the World Bank, United Nations Conference on Trade and Development and Global Financial Integrity on Sub-Saharan African countries covering the period 2005-2014. Our regression estimates reveal that a unit increase in political stability and corruption control reduce illicit financial outflow due to misinvoicing in merchandise trade by an average of US$ 20.5 million and US$ 44.3 million respectively. The results also show that high trade rating, financial sector rating and exchange rates reduce illicit financial outflows while an increase in foreign direct investment and inflation increase illicit financial outflow. We recommend that governments in Sub-Saharan Africa countries must ensure that institutions responsible for fighting corruption and enhancing stable governance are well empowered and given the needed resources to work effectively to reduce corruption to the barest minimum.
Item Type: | MPRA Paper |
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Original Title: | Corruption, political stability and illicit financial outflows in Sub-Saharan Africa |
Language: | English |
Keywords: | Corruption, political stability, illicit financial outflow, Sub-Saharan Africa |
Subjects: | F - International Economics > F3 - International Finance > F38 - International Financial Policy: Financial Transactions Tax; Capital Controls G - Financial Economics > G3 - Corporate Finance and Governance |
Item ID: | 89044 |
Depositing User: | Mr Orkoh Emmanuel |
Date Deposited: | 19 Sep 2018 09:28 |
Last Modified: | 02 Oct 2019 21:02 |
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URI: | https://mpra.ub.uni-muenchen.de/id/eprint/89044 |