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Natural Resource Rents-Capital Flight Nexus in Selected ECOWAS Countries: Evidence from Non-Linear ARDL Approach

Abdulfatai A. Adedeji


Sherifat W. Kogbodoku

Abdulfatai A. Adedeji 1 ,

Sherifat W. Kogbodoku 1 
  1. Department of Economics, University of Ibadan, Ibadan, Nigeria. 1

Pages: 81-97

DOI: 10.18488/journal.26.2021.102.81.97

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Article History:

Received: 12 July, 2021
Revised: 16 August, 2021
Accepted: 06 September, 2021
Published: 21 September, 2021


The challenge of capital flight in the ECOWAS sub-region is worrisome. Huge revenue from natural resources also contributes to the relocation of available resources necessary for the development of the region. The study identifies the revenue from natural resources as a key driver of capital flight in the region. Hence, this study analyzed the effect of natural resource rents on capital flight in ECOWAS countries accounting for the role of asymmetry. Also, the study employed the nonlinear autoregressive distributed lag (NARDL) model to account for short-run and long-run asymmetries. The results revealed the presence of asymmetry in five countries, while two countries displayed symmetric effects. It also showed that the symmetric effect of natural resource rents on capital flight is weak for Guinea and Nigeria in the short-run while the long-run effect is not more pronounced for Nigeria. In the case of asymmetric effect, natural resource rents amplified capital flight in Cape Verde and Sierra Leone. Further evidence shows that the non-linearity of natural resource rents does not encourage capital flight in Burkina Faso, Cote d’Ivoire, and Ghana. Hence, the countries should promote transparency and accountability in the management of proceeds from natural resources to enhance development in the region.
Contribution/ Originality
This study uses new estimation methodology to examine the relationship between total natural resource rents and capital flight in selected ECOWAS countries. This provides insight into whether high/low rents from natural resources are associated with high/low capital flight.


Capital flight, Natural resource rents, Asymmetry, Non-linear ARDL, ECOWAS, Resource-abundance, Resource-scarce.



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This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.


Both authors contributed equally to the conception and design of the study.

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