International Journal of Social Science & Economic Research
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Title:
THE ROOT CAUSES OF CAPITAL FLIGHT IN TUNISIA: AN EMPIRICAL INVESTIGATION

Authors:
Afef TRABELSI MNIF, Olfa KHARRAT, Rochdi FEKI

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1Afef TRABELSI MNIF, 2Olfa KHARRAT, 3Rochdi FEKI
1. Assistant Professor of Economics at High School of Commerce, University of Sfax, Tunisia.
2. Ph.D of Economics, University of Sfax, Tunisia.
3. Professor of Economics at High School of Commerce, University of Sfax, Tunisia.

MLA 8
MNIF, Afef TRABELSI, et al. "THE ROOT CAUSES OF CAPITAL FLIGHT IN TUNISIA: AN EMPIRICAL INVESTIGATION." Int. j. of Social Science and Economic Research, vol. 3, no. 9, Sept. 2018, pp. 5270-5294, ijsser.org/more2018.php?id=365. Accessed Sept. 2018.
APA
MNIF, A., KHARRAT, O., & FEKI, R. (2018, September). THE ROOT CAUSES OF CAPITAL FLIGHT IN TUNISIA: AN EMPIRICAL INVESTIGATION. Int. j. of Social Science and Economic Research, 3(9), 5270-5294. Retrieved from ijsser.org/more2018.php?id=365
Chicago
MNIF, Afef TRABELSI, Olfa KHARRAT, and Rochdi FEKI. "THE ROOT CAUSES OF CAPITAL FLIGHT IN TUNISIA: AN EMPIRICAL INVESTIGATION." Int. j. of Social Science and Economic Research 3, no. 9 (September 2018), 5270-5294. Accessed September, 2018. ijsser.org/more2018.php?id=365.

References
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Abstract:
In this paper we analyze the root causes of Capital flight in Tunisia. So we determine whether there is a relationship between capital flight and some institutional and macroeconomic variables by using annual data between 1984 and 2014. The capital flight was used as dependent variable, measured by the Bank Deposit Approach which adopts an indirect proxy of capital flight in the sense of private wealth held abroad by resident as reported by the Bank for International Settlements. For estimation purposes, we use Ordinary Least Squares estimation method, cointegration test and ECM methods. Our results indicate that the major incentives for capital movement were corruption, political events, exchange rates overvaluation, and external debts use. This study opens up new insights for policies markers to implement the appropriate mechanisms in order to stop the massive capital outflows, repatriate flight capital and promote good governance for sustainable economic development.