An empirical investigation of capital flight from Zimbabwe
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Date
Authors
Makochekanwa, Albert
Journal Title
Journal ISSN
Volume Title
Publisher
University of Pretoria, Department of Economics
Abstract
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.
Description
Keywords
Capital flight, External debt, Foreign direct investment inflows, Macroeconomic instability
Sustainable Development Goals
Citation
Makochekanwa, A 2007, 'An empirical investigation of capital flight from Zimbabwe', University of Pretoria, Department of Economics, Working paper series, no. 2007-11. [ http://web.up.ac.za/default.asp?ipkCategoryID=736&sub=1&parentid=677&subid=729&ipklookid=3]