Abstract
This study aims to compare the opportunity cost of illicit financial flows in terms of financing basic social services in CAEMC and WAEMU zone. For this, we use the ICOR simulation method based on the Harrod and Domar model and recently applied by Nkurunziza (2015) and Moulemvo (African Economic Review 28:113–123, 2016). The results of these simulations show that based on the calculated ICOR coefficient, we estimate the loss of GDP in CAEMC at 18 billion USD and that of WAEMU at 13 billion USD. This loss of GDP in the victim countries would make it possible to allocate additional resources for public social spending.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
References
Barro, R. (1990). Government spending in a sample model of endogeneous growth. Journal of Political Economy, 98(5) Part 2, S103S126.
Delavallade, C. (2006). Corruption and distribution of public spending in developing countries. Journal of Economics and Finance, 30(2), 222–239.
Khodaei, H. (2012). The calculation of capital flight and its effect on macroeconomic variables in Iran. Journal of Basic and Applied Scientific Research, 2(9), 9365–9369.
Lucas, R. (1988). The mechanics of the economic development. Journal of Monetary Economics, 22(July), 3–42.
Mauro, P. (1998). Corruption and distribution of public spending in developing countries, Journal of Public Economics, 69, 263–79.
Moulemvo, A. (2016). Impact of capital flight on public social expenditure in Congo-Brazzaville. African Economic Review, 28(S1), 113–123.
Ndikumana, L. (2015). Integrated yet marginalized: Implications of globalization for african development. African Studies Review, 58(2), 7–28.
Ndikumana, L., & Boyce, J. (2013). La dette odieuse de l’Afrique. Dakar: Amalion Publishing.
Nkurunziza, J. (2015). Capital flight and poverty reduction in Africa. In S. Ajayi & L. Ndikumana (Eds.), Capital flight from Africa: Causes, effects and policy Issues (pp. 81–110). Oxford: Oxford University Press.
Romer, P. (1990). Are nonconvexities important for understanding growth ? (Rapport technique). National Bureau of Economic Research.
Saheed, Z., & Ayodeji, S. (2012). Impact of capital flight on exchange rate and economic growth. International Journal of Humanities and Social Science, 2(13), 247–255.
Shleifer, A., & Vishny, R. (1993). Corruption. The Quarterly Journal of Economics, 108(3), 599–617.
WDI. (2017). World development indicators, World Bank.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG
About this chapter
Cite this chapter
Bouhem, F.C., Gbetnkom, D. (2020). Illicit Financial Flows and Financing of Basic Social Services: A Comparative Study of Opportunity Cost Between CAEMC and WAEMU Zone. In: Seck, D. (eds) Financing Africa’s Development. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-030-46482-0_10
Download citation
DOI: https://doi.org/10.1007/978-3-030-46482-0_10
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-46481-3
Online ISBN: 978-3-030-46482-0
eBook Packages: Economics and FinanceEconomics and Finance (R0)