Kidnapping rate and capital flight: Empirical evidence from developing countries

Godwin Okafor, Obiajulu Ede

    Research output: Contribution to journalArticlepeer-review


    This paper contributes to the literature on capital flight by investigating the relationship between kidnapping rate and capital flight in developing countries. Numerous empirical studies exist on the determinants of capital flight but, surprisingly, none of them have investigated the empirical link between kidnapping and capital flight. To fill this existing void in the literature, this paper utilised a sample of 67 developing countries for the period 2003–2017. Estimates of the GMM technique show that kidnapping rate has a positive and significant impact on capital flight. However, estimations of the marginal differences show that this significant effect remained consistent only in the sample of ‘fragile’ developing countries. The results remained consistent to alternative measures of capital flight.
    Original languageEnglish
    Pages (from-to)2590-2606
    Number of pages17
    JournalInternational Journal of Finance and Economics
    Issue number3
    Publication statusPublished - 3 Feb 2021


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