Capital Flight and Financial Globalisation: Will FurtherudOpening up Increase Capital Flight out of Nigeria?

摘要

Capital flight is a challenge to many emerging economies especially those with yet to be perfectudfinancial structures and systems. This study undertakes a study of capital flight as it applies to the Nigerianudenvironment in the face of the current episodes of financial globalisation and capital outflows out of theudeconomy. It adopts paired sample and the ordinary least square techniques with the main variables of exchangeudrates, Kaopen, investment and others to perform its analyses. The main finding is that the Nigerian capitaludflight has not been significantly increased by the financial globalisation process but it also indicates thatudKaopen (an index of financial globalisation) is significant in the process of acquisition of external assets andudmight therefore, jeopardise the country's ability to retain capital within the economy for development purposes.udExchange rates and domestic investment show significance and thus are impacted by the process. The studyudrecommends the improvement in the domestic investment variables and a cleaner float of the currency to retainudcapital and improve the environment so that Nigeria can reap the benefits associated with the process ofudfmancial globalisation.