Financial Sector Policies And Capital Flight From Nigeria

The book "Financial Sector Policies And Capital Flight From Nigeria" by Taiwo Ajilore provides a comprehensive analysis of the impact of liberalization measures in the financial sector on the phenomenon of capital flight in Nigeria. Using a macroeconometric simulation model, the study examines how various forms of financial liberalization, such as the deregulation of interest rates, the reduction of minimum reserve requirements, and changes in exchange rate policy, influence capital flight and its determinants. The results of the simulation experiments indicate that deregulating interest rates positively stimulates capital flight, while easing minimum reserve requirements ultimately leads to a decrease in capital flight. Additionally, a change in the exchange rate has a dampening effect on capital flight flows. The study concludes that financial liberalization policies are useful for reducing capital flight in Nigeria, but deeper and more fundamental changes to the economic and political systems may be necessary.