One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa

  • Simplice A. AsonguEmail author
  • Rexon T. Nting
  • Evans S. Osabuohien


This inquiry assesses if terrorism sustains the capital flight trap and whether the relationship is affected by varying the levels of governance and globalisation. The empirical evidence is based on interactive generalised method of moments with data from 37 African countries for the period 1996–2010. The following are established: (1) Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. (2) Terrorism sustains the positive effect of the capital flight trap on capital flight. (3) For the most part (especially with regard to political governance), terrorism sustains the addiction to capital flight in above-median governance sub-samples. Policy implications are discussed.


Capital flight terrorism Africa 

JEL Classification

C50 D74 F23 N40 O55 



The authors are indebted to the editor and reviewers for the constructive comments

Compliance with Ethical Standards

Conflict of Interest

The authors declare that they have no conflict of interest.

Ethical Approval

This article does not contain any studies with human participants or animals performed by the authors.


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© Springer Science+Business Media, LLC, part of Springer Nature 2019

Authors and Affiliations

  • Simplice A. Asongu
    • 1
    Email author
  • Rexon T. Nting
    • 2
  • Evans S. Osabuohien
    • 3
  1. 1.Department of EconomicsUniversity of South AfricaPretoriaSouth Africa
  2. 2.University of WalesLondonUK
  3. 3.Department of Economics and Development Studies, & Chair, Centre for Economic Policy and Development Research (CEPDeR)Covenant UniversityOtaNigeria

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