This paper investigates the causes of capital flight from Zimbabwe for the period 1980 to
2005. The results show external debt, foreign direct investment inflows, and foreign
reserves to be the major causers of capital flight. Economic growth is negatively
correlated with capital flight. The calculations estimate Zimbabwean capital flight at US
$10.1 billion over the 1980 to 2005 period, with capital flight-to-GDP ratio roughly 5.4
per cent. In other words, for every US dollar of GDP accumulated by Zimbabwe annual
from 1980 to 2005, private Zimbabwean residents accumulated (US) 5.4 cents of external assets annually during the same period.