Go to AfricaBib home

Go to AfricaBib home Africana Periodical Literature Go to database home

bibliographic database
Line
Previous page New search

The free AfricaBib App for Android is available here

Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Capital flight from South Africa: magnitude and causes
Authors:Smit, B.W.ISNI
Mocke, B.A.
Year:1991
Periodical:South African Journal of Economics
Volume:59
Issue:2
Pages:101-117
Language:English
Geographic term:South Africa
Subjects:external debt
foreign investments
External link:https://doi.org/10.1111/j.1813-6982.1991.tb00969.x
Abstract:Like other developing countries, South Africa has also been experiencing the economic constraints implied by a foreign debt burden from the time of the debt standstill in August 1985 and has been classified as one of a group of indebted developing countries exhibiting capital flight. In the South African economic literature reference to capital flight is made in a number of studies, usually, however, without any serious attempt at quantification or explanation. This paper investigates the magnitude and the causes of capital flight from South Africa. Measurement is attempted by applying a number of the measures suggested in the literature (balance of payments measure, indirect measure, direct measure, derived measure) to the data available on South Africa and the causes are investigated by means of an econometric analysis. The results suggest that substantial capital outflows have taken place during the years 1974, 1977-1980 and 1986-1987 in particular and that adverse domestic political developments, exchange rate overvaluation, poor macroeconomic performance and the availability of foreign exchange systematically explain capital flight from South Africa during the period 1973-1988. App., bibliogr., notes, ref.
Cover