Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062

Conference List

The Economics and Finance Letters

June 2019, Volume 6, 2, pp 159-169

Incidence of Short Term Private Capital Outflow: Empirical Analysis in Nigeria

Raji, Rahman Olanrewaju

Raji, Rahman Olanrewaju 1

  1. Humanity Department, Canterbury International High, Lekki-Ajah, Lagos, Nigeria. 1

on Google Scholar
on PubMed

Pages: 159-169

DOI: 10.18488/journal.29.2019.62.159.169

Share :

Article History:

Received: 04 June, 2019
Revised: 10 July, 2019
Accepted: 12 August, 2019
Published: 19 September, 2019


Over the years, the rising uncertainty in macroeconomic policy environment coupled with the prevailing uncertain non-economic factors like political instability, corruption, poor governance, civic conflicts and property right is perceived to be having contributing factors on short term private capital outflow in Nigeria. The study investigated the incidence of short term private capital outflow in Nigeria where a combination of the push factors and portfolio risk theories were adopted in the study for the period 2013/March – 2018/May using the fully modified OLS technique. The long-run and short-run results show that uncertainty of macroeconomic policy environment such as inflation-price instability, real exchange rate volatility and lack of confidence on domestic stock market enhanced the increasing level of short term private capital outflow in Nigeria. The study recommends that authority should adopt more pro-growth policies that can ensure and maintain sound domestic macroeconomic policies to stem short term private capital outflow and that stock market authority should ensure accountability and transparency to strengthen the interest of domestic investors if they want to reduce the outflow of domestic capital.
Contribution/ Originality
This study contributes to the existing literature by distinguishing itself identifying the dimensions of the domestic uncertainty at the macroeconomic level on short term private capital outflow.


Short term private capital outflow, Macroeconomic instability, Macroeconomic policy, Environment, Fully modified OLS, Error correction model.



Ajayi, S.I., 1992. An economic analysis of capital flight from Nigeria. Policy Research Working Papers, Country Operations. World Bank WPS 993 A.

Alam, I. and R. Quazi, 2003. Determinants of capital flight: An econometric case study of Bangladesh. International Review of Applied Economics, 17(1): 85-103.Available at:

Ayadi, F.S., 2008. Econometric analysis of capital flight in developing countries: A study of Nigeria. Paper Presented at the 8th Global Conference on Business and  economy Florence Italy October 18th – 19th.

Box, G.E.P. and G.M. Jenkins, 1970. Time series analysis forecasting and control. San Francisco, CA, USA: Holden-Day.

Boyce, J., 1992. The revolving door external debt and capital flight; A Philippine case study.  World Development, 20(3): 335-349.Available at:

Boyce, J.K. and L. Ndikumana, 2001. Public debts and private assets: Explaining capital flight from Sub- Saharan  African countries. World Development, 31(1): 107–130.

Chipalkatti, N. and M. Rishi, 2001. External debt and capital flight in the Indian economy. Oxford Development Studies, 29(1): 31-44.Available at:

Collier, P., A. Hoeffler and C. Pattillo, 2001. Flight capital as a portfolio choice. World Bank Economic Review, 15(1): 55-80.Available at:

Cuddington, J.T., 1986. Capital flight: Estimates, issues, and explanations. Princeton, NJ: International Finance Section, Department of Economics, Princeton University, 58.

David, K.G. and I.K. Ampah, 2018. Macroeconomic volatility and capital flights in Sub-Saharan Africa a dynamic panel estimation of some selected HIPC countries. Mediterranean Journal of Social Sciences, 9(5): 165-176.Available at:

Eryar, D., 2005. Capital flight from Brazil (1981 -2000). In G. Epstein (Ed.), Capital flight and capital controls in developing countries. Edward Elgar Spring.

Forson, R., K.C. Obeng and W. Brafu-Insaidoo, 2017. Determinants of capital flight in Ghana. Journal of Business and Enterprise Development, 7: 151 - 180.

Hermes, N. and R. Lensink, 2000. The magnitudes and determinants of capital flight: The case of  Six Sub-Saharan countries. Gronigen the Netherlands: University of Gronigen

Lawanson, A.O., 2007. An econometric analysis of capital flight from Nigeria: A portfolio approach. Africa Economic Research Consortium, Nairobi. Paper No 166.

Le, Q.V. and P.J. Zak, 2006. Political risk and capital flight. Journal of International Money and Finance, 25(2): 308-329.Available at:

Levin, A., C.F. Lin and C.S.J. Chu, 2000. Unit root tests in panel data: Asymptotic and finite-sample properties. Journal of Econometrics, 108(1): 1–24.

Levišauskait, K., 2010. Investment analysis and portfolio management. Development and  approbation of applied courses. Kaunas Lithuania: Vytauta Magnus University.

Liew, S.-L., S.A. Mansor and C.-H. Puah, 2016. Macroeconomic determinants of capital flight: An empirical study in Malaysia. International Business Management, 10(13): 2526-2534.

Markowitz, H., 1952. Portfolio selection. The Journal of Finance, 7(1): 77-91.

Meade, J.E., 1951. The theory of international economic policy: Balance of payment. Oxford: Oxford University Press.

Moreno-Vozmediano, R., K. Nadiminti, S. Venugopal, A.B. Alonso-Conde, H. Gibbins and R. Buyya, 2007. Portfolio and investment risk analysis on global grids. Journal of Computer and System Sciences, 73(8): 1164-1175.Available at:

Myles, G.D., 2003. Investment analysis. UK: Mcgraw Hill.

Ndikumana, L. and J.K. Boyce, 2003. Public debts and private assets: explaining capital flight from Sub-Saharan African countries. World Development, 31(1): 107-130.Available at:

Nyoni, T., 2000. Capital flight from Tanzania. International Monetary Fund, Working Paper.

Oluwaseyi, M.H., 2017. The capital flight from Nigeria: An empirical analysis. Journal of Indonesian Applied Economics, 7(2): 131-145.

Raheem, I.D., 2015. Re-examining the determinants of capital flight and the potential benefits of capital flight repatriation for SSA. African Journal of Business and Economic Research, 10(1): 55-94.

Reilly and Brown, 2012. Investment analysis and portfolio management. USA: South-Western Cengage learning.

Schlegel, S., N. Korn and G. Scheuermann, 2012. On the interpolation of data with normally distributed uncertainty for visualization. Visualization and Computer Graphics, 18(12): 2305–2314.Available at:

Sheets, N., 1995. Capital flight from the countries in transition: Some theory and empirical evidence (No. 514). Board of Governors of the Federal Reserve System.

Victor, A., 2004. Capital flight and war. Centre for the Study of African Economies & Department of Economics, University of Oxford.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


This study received no specific financial support.

Competing Interests:

The author declares that there are no conflicts of interests regarding the publication of this paper.


Related Article

( 1 ) Incidence of Short Term Private Capital Outflow: Empirical Analysis in Nigeria
( 2 ) Driving Role of Institutional Investors in the Indian Stock Market in Short and Long-Run – An Empirical Study
( 4 ) Development of Logarithmic Equations for Statistical Sample Determination
( 5 ) Role of Foreign Investment and External Debt in Determination of Exchange Rate
( 6 ) Determinants of Share Price Movement in Nigeria -The Management Perspective
( 7 ) Determinants of Tax Revenue in Ethiopia (Johansen Co-Integration Approach)
( 8 ) Determinants of Import Demand Functions of Pakistan: An ARDL Bound Testing Approach
( 9 ) Determining Rural Poverty in Manga Del Cura – Ecuador Non Delimited Zone
( 10 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 11 ) Determinants of Rural Residential Solid Waste Collection Services in Lagos State
( 12 ) Determinants of Public Sector Corruption in Nigeria
( 13 ) Determinants of Banks Profitability & Liquidity and the Role of BASEL III in Islamic & Conventional Banking Sector of Pakistan: A Case Study of NBP
( 14 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 15 ) Determinants of Corporate Tax Avoidance Strategies among Multinational Corporations in Malaysia
( 17 ) Determinants of Exchange Rate in Nigeria: A Comparison of the Official and Parallel Market Rates
( 18 ) Determinant Analysis of Productivity on Rice Management in Indonesia
( 19 ) Determinant of MSMEs Performance and its Impact on Province GRDP in Indonesia
( 20 ) Determinants of Financial Performance and its Impact on the Growth of Islamic Bank Assets on Indonesia
( 21 ) Determinant of Tax Revenue Effort in Sub-Saharan African Countries: A Stochastic Frontier Analysis
( 22 ) Analysis of Credit Ratings Determinants: Evidences in Brazilian and American States
( 23 ) Determinants of Profitability and its Implications on Corporate Values (Studies at Ceramic, Porcelain and Glass Sub Sector Listed in Indonesia Stock Exchange, 2009 - 2018)
( 24 ) Government Borrowing Behaviour: Implications for Private Sector Growth in Nigeria
( 25 ) A Factor Analysis Approach Towards a Study of the Factors Affecting Students’ Choice of Higher Education Institution: A Case Study of a Private Institution (Twintech International University College of Technology)
( 26 ) Effect of Budget Defict on Private Investment in East African Community for the Period 1981-2015: A Panel Data Analysis
( 27 ) Public-Private Partnership as a Strategy for E-Governance Funding in Africa: The Gains and the Pains
( 28 ) Firm-Level Investment Decisions Under Uncertainty and Irreversibility in Zimbabwes Private Firms
( 29 ) Effects of Socio-Cultural Diversity on the Performance of Private Health Care Organizations in Kogi State
( 31 ) State and Evolution of Public and Private Research and Development in Bulgarian Agriculture
( 32 ) Impact of Labour, Capital and Human Resources in Productivity of Transport Firms in Nigeria
( 33 ) The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models
( 34 ) Explaining Psychological Capital Components through Organization’s Ethical Climate Components
( 35 ) Rice Farmer and Capital Formation: A Case Study of Rice Farmer's Credit Cooperative in Itoikin, Ikosi-Ejirin LCDA, Lagos State
( 36 ) Under-Utilization of Female Capital: A Quantitative Study in Pakistani Perspective
( 37 ) Macroeconomic Indicators and Capital Formation Growth in Nigeria: A New Evidence
( 38 ) Foreign Capital Inflows and Unemployment in Nigeria: A New Evidence from ARDL-Bounds Testing Approach
( 39 ) Disaggregated Foreign Capital Inflows and Economic Growth in a Developing Economy: Empirical Evidence from Nigeria
( 40 ) Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation
( 41 ) Decision-Making on Working Capital Management, Based on Industry Differences
( 42 ) Foreign Direct Investment in Zimbabwe: The Role of Uncertainty, Exports, Cost of Capital, Corruption and Market Size
( 43 ) Factors Influencing Human Capital in Ready Made Garments Industry in Bangladesh
( 44 ) Africa's Human Capital Development: Is Public Finance Management an Effective Strategy?
( 45 ) Analysis of Effect of Profitability, Capital, Risk Financing, the Sharia Supervisory Board and Capabilities Zakat in Islamic Perspective with Circular Approach Causastion on Islamic Banks in Indonesia
( 47 ) Re-Engineering Nigerian Economy through Human Capital Development: A Case of Manufacturing Firms In Southern Part of Nigeria
( 48 ) Intellectual Property Rights, Human Capital and Innovation in Emerging and Developing Countries
( 49 ) Does Capital Structure Affect the Profitability of Listed Family and Non-Family Firms? Evidence from Bangladesh
( 50 ) Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation
( 53 ) Just-In-Time: Review of Empirical Studies
( 54 ) The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia
( 55 ) An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China
( 56 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 57 ) The Internal Branding Process: Customer Reprofiling and Brand Positioning (Empirical Study on Traditional Snack Food in Bandung-Indonesia)
( 58 ) Managerial Judgement Versus Financial Techniques in Strategic Investment Decisions: An Empirical Study on the Syrian Coastal Region Firms
( 59 ) Empirical Evidence on Municipal Tax Policy and Firm Growth
( 60 ) The Effect of Public Debt on Domestic Product and Unemployment (An Empirical Study on the Palestinian Economy)
( 61 ) Does the Holiday Effect Differ from Religious to Non-Religious Holidays? Empirical Evidence from Egypt
( 62 ) What Drives Banking Stability? Empirical Evidence from ECOWAS Countries
( 63 ) The Profitability of Momentum Strategies: Empirical Evidence from Damascus Securities Exchange (DSE)
( 64 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 65 ) Forecasting Equity Index Volatility: Empirical Evidence from Japan, UK and USA Data
( 66 ) Intention to Use E-Recruitment System: Empirical Evidence from Jobseekers in the Advertising Industry in Malaysia
( 68 ) Exchange Rate and Foreign Reserves Interface: Empirical Evidence from Nigeria
( 69 ) An Empirical Assessment of the Impact of Access to Credit on Farm Output: A Case Study of Sefwi-Wiawso Municipality Ghana
( 70 ) An Empirical Evaluation of Cashless Systems Implementation in Ghana
( 71 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach
( 73 ) Perceived Poverty and Alleviation Efforts of Kogi State Community and Social Development Agencies in Kogi State: An Empirical Investigation
( 74 ) An Empirical Investigation of Real Exchange Rate Responses to Foreign Currency Inflows: Revisiting the Dutch Disease Phenomenon in South Asia
( 75 ) Inflation, Oil Revenue, and Monetary Policy Mix in an Oil-Dependent Economy: Empirical Insights from the Case of Nigeria
( 77 ) The Impact of Social Media on Economic Growth: Empirical Evidence of Facebook, YouTube, Twitter and Pinterest
( 78 ) New Evidence on the Link Between Income Inequality and Misery Index: A Nonlinear Time Series Analysis
( 79 ) Geographical Starting Points the Analysis of Current Rural Problems in Montenegro: Case Study of Rural Local Community Kralje
( 80 ) Institutionalising and Mainstreaming Policy Analysis Culture in African Environments
( 81 ) Profit And Loss Sharing As an Offshoot for Bank Stability: A Comparative Analysis
( 83 ) Benefit-Cost Analysis of Alternative Insect Pests Management in Cashew and Mango Orchards in Tanzania
( 84 ) Comparative Analysis of Technical Efficiency of Milk Production Systems in Uasin Gishu County of Kenya
( 85 ) An Analysis of Purchase Behavior of Generation Y in Kenya
( 86 ) Dynamic Analysis of Competitive Technology Innovation Diffusion Model
( 88 ) Measuring Efficiency in Banks: A Brief Survey on Non – Parametric Technique (Data Envelopment Analysis)
( 89 ) A Theoretical Analysis Upon the Environmental Health and Justice Issue: A Case Study for a Comparison Between G20s Unitary and Federal Members
( 90 ) Decoupling Analysis of Bulgaria’s Agriculture
( 92 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 93 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 94 ) Purchasing Power Parity Hold in Major SAARC Countries? Panel Cointegration Analysis
( 95 ) Specifying Quality of Governance in Transition Economies with Cluster Analysis
( 98 ) China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges
( 99 ) The Effects of Exchange Rate Variability on Trade Flows in Nigeria: A Cointegration Analysis
( 100 ) Social Protection Programmes, Agricultural Production and Youth Employment in Nigeria: Analysis from LSMS-ISA
( 101 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 102 ) An Analysis of Chinas Poverty Research Based on CiteSpace
( 103 ) Dutch Disease: Myth or Reality? An Analysis of the ARDL Model
( 104 ) Analysis of the Effects of Pull and Push Factors on Brain Drain: An Example of Turkey
( 105 ) Analysis of Environmental Factors Affecting Manufacturing Small and Medium-Size Enterprises in Kogi State Nigeria
( 107 ) Problems of Bilateral Trade Deficit between Bangladesh and India: A 2SLS Regression Analysis
( 110 ) The Trajectory and Diaspora of Women Imprisonment: An Analysis
( 111 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017
( 112 ) Multivariate Analysis in Formulation of the Benefit-Cost Index Related to the Sugarcane Production System in the Quirinopolis Municipality Productive Center, Goias, Brazil
( 114 ) An Agnostic Analysis of Exchange Rate Movement in Ghana
( 115 ) Analysis of Traffic Accident Occurrence at Hazardous Road Locations: A Case Study in Tunisia
( 116 ) Analysis of Causal Nexus between Defense Spending and Economic Growth in Nigeria: A Toda-Yamamoto Approach
( 119 ) Export- Led Growth Hypothesis for Ghana: A TVAR & TVECM Analysis
( 120 ) Contemporary Approach to Enhanced Road Transport System in Nigeria Through the Application of It-Based (Online) Bus Ticketing and Payment System
( 122 ) The Impact of Investment Climate Reforms on the Development of Small and Medium Sized Enterprises in Nigeria: A Policy Brief
( 123 ) Gaining Trust After the Financial Crisis in the Nigerian Economy: A Conceptual Framework
( 124 ) An Enquiry into the Contributions of Microfinance Institutions Towards the Development of Small Scale Business in Nigeria
( 125 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 126 ) Challenges of Human Rights Abuses in Nigerian Democratic Governance – Which Way Forward ?
( 127 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 128 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 129 ) Anti-Corruption Crusade in Nigeria: More Words Than Deeds
( 130 ) Social Security; A Public Policy for Good Governance in Nigeria: The Role of Nigerian Legislature
( 131 ) National Urban Development Policy and the Unanswered Development Question of Slum in Nigeria
( 133 ) Effective Tax Administration and Institutionalization of Accounting Systems in Small and Medium Scale Enterprises: Evidence from Nigeria
( 134 ) The Impact of Rice Production, Consumption and Importation in Nigeria: The Political Economy Perspectives
( 135 ) Good Governance, Rural Development and Poverty Alleviation in Nigeria: Issues and Challenges
( 136 ) Federalism and Planning in Nigeria
( 137 ) Structural Breaks and the Long-Run Stability of Demand for Real Broad Money Function in Nigeria: A Gregory-Hansen Approach
( 138 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 139 ) Rural Saving Mobilizations and Economic Development in Akamkpa Local Government Area of Cross River State - Nigeria
( 140 ) The Phenomenon of Money Politics and Nigeria’s Democratization: An Exploration of the Fourth Republic
( 141 ) Nigerian Politics, Economic Development, and the Role of Human Rights Organisations on Elections
( 142 ) The Effects of Changes in Accounting Standards on Value Relevance of Financial Statement Information of Malaysia and Nigeria Banks
( 143 ) Insecurity and Foreign Direct Investment in Nigeria
( 144 ) An Assessment of the Relationship between Budget Deficit Syndrome and Consumer Welfare in Nigeria (1985 – 2014)
( 146 ) Market Share and Profitability Relationship: A Study of the Banking Sector in Nigeria
( 147 ) The Effect of Exchange Rate Changes on Consumer Prices in Nigeria: Evidence from VECM Model
( 148 ) Quality of Accounting Reporting After the IFRS Adoption in Nigeria
( 149 ) Structural Breaks, Electricity Generation and Economic Growth in Nigeria
( 151 ) Implications of Crude Oil Price Volatility and Parallel Exchange Rate Fluctuation on the Cost of Living in Nigeria
( 152 ) National Security and Democratization in Nigeria: The Case of Insurgence
( 153 ) The Link Between Agricultural Budgetary Allocation and Economic Growth in Nigeria
( 154 ) Relevance of Stakeholders Theory, Organizational Identity Theory and Social Exchange Theory to Corporate Social Responsibility and Employees Performance in the Commercial Banks in Nigeria
( 155 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 156 ) Rural Roads Infrastructure and Agricultural Products Distribution: A Focus on Akure South Local Government Area, Ondo State, Nigeria
( 158 ) Military Regimes and Nigeria’s Economic Development, 1966-1999
( 160 ) Entrepreneurial Networking and Women Entrepreneurs’ Contribution to Employment Creation in Rivers State, Nigeria
( 161 ) An Investigation of the Relationship between Manufacturing Output and Economic Growth : Evidence from Nigerias Data Set
( 162 ) Employee Loyalty and Organizational Citizenship Behaviour in the Port Harcourt Area Command of the Nigeria Police Force
( 163 ) Effect of Institutional Factors on Foreign Direct Investment in Nigeria
( 164 ) Measuring and Assessing the State of Technological Innovations and the Level of Interaction between Rice Processors and Stakeholders in Rice Processing Industry in Nigeria