Capital Flight and Poverty Reduction in Africa
- Massachusetts Political Economy Research Institute (PERI) 2014
- 50p.
- WORKINGPAPER SERIES Number 366 .
This paper investigates the impact of capital flight on poverty reduction through the investment and growth channel. It uses two approaches. First, the Incremental Capital-Output Ratio (ICOR) approach is used to estimate additional income that would have been generated if all capital flight had been invested domestically. The second approach uses capital stock to derive the potential effect of capital flight on income per capital and on poverty.
Capital Flight, Poverty Reduction, Investments, Capital Outflow
