International records / OpenAlex research

Impact of Capital Flight on Exchange rate in Nigeria

The study examined capital flight and real exchange rate in Nigeria from 1990 to 2014.The study used five independent variables (capital flight, foreign direct investment, current account balance, foreign borrowing and external reserves) and one dependent variable (real exchange rate).Test carried out include unit root test, co-integration test, causality test and ordinary least square.The study revealed that: There is positive significant relationship between foreign borrowing and real exchange rate in Nigeria, there is negative and insignificant relationship between capital flight and real e…