Fiscal Policy and Capital Flight in Kenya
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Date
2016
Authors
Muchai, Dianah Ngui
Muchai, Joseph
Journal Title
Journal ISSN
Volume Title
Publisher
Blackwell Publishing
Abstract
: Capital flight has been an issue of concern for Africa because it reduces the continent’s much needed investible
funds. In Kenya, the country lost US$ 4.9 billion in real terms from 1970 to 2010 through capital flight. This study seeks to
provide fiscal evidence of capital flight in Kenya. The results establish that past capital flight, change in debt, and government
expenditure have no significant impact on capital flight in Kenya. However, external debt, taxation, and expenditure practices
under different political regimes have significant effects on capital flight. The study discusses policy implications emerging from
the empirical results.
Description
A Research Article in the African Development Review
Keywords
Fiscal Policy, Capital Flight, Kenya
Citation
Muchai, D. N., & Muchai, J. (2016). Fiscal policy and capital flight in Kenya. African Development Review, 28(S1), 8-21.