Fighting African capital flight: trajectories, dynamics, and tendencies

Asongu, Simplice A.; Uduji, Joseph I.; Okolo-Obasi, Elda N.

doi:10.1186/s40854-020-00179-0

Financial Innovation

Table 2 Absolute Convergence

From: Fighting African capital flight: trajectories, dynamics, and tendencies

	Income Levels				Legal Origins		Religious Dom.		Regions		Resources		Stability		Africa
	UMI	LMI	MI	LI	English	French	Christ.	Islam	SSA	NA	Oil	Non-oil	Conflict	Non-co.
Initial	0.04***	0.092	0.04***	0.662***	0.661***	− 0.25***	0.661***	0.167	0.661***	0.354**	−0.31***	0.661***	0.662***	−0.077	0.661***
Initial	(0.000)	(0.813)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.421)	(0.000)	(0.030)	(0.000)	(0.000)	(0.000)	(0.484)	(0.000)
AR(1)	0.994	−1.381	0.939	−1.051	− 1.005	− 1.078	− 1.056	− 1.647*	− 1.057	− 1.398	−1.000	− 1.009	−1.001	−0.773	− 1.057
AR(1)	(0.320)	(0.167)	(0.347)	(0.293)	(0.314)	(0.280)	(0.290)	(0.099)	(0.290)	(0.162)	(0.317)	(0.312)	(0.316)	(0.439)	(0.290)
AR(2)	−0.999	0.676	− 0.998	− 0.991	−1.010	− 0.921	−1.002	0.525	−1.002	− 1.244	−1.038	− 1.009	− 0.999	−0.727	−1.002
AR(2)	(0.317)	(0.499)	(0.318)	(0.321)	(0.312)	(0.357)	(0.316)	(0.598)	(0.316)	(0.213)	(0.299)	(0.312)	(0.317)	(0.467)	(0.316)
Sargan OIR	4.854	10.928	14.590	7.313	2.567	18.113	11.487	8.424	14.870	3.207	6.594	7.191	6.012	21.551	15.022
Sargan OIR	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)	(1.000)
Wald	674***	0.055	938***	8e+ 5***	2e+ 6***	25***	4e+ 5***	0.645	4e+ 5***	4.69**	2087***	2e+ 6***	7e+ 7***	0.488	442672***
Wald	(0.000)	(0.813)	(0.000)	(0.000)	(0.000)	(0.000)	(0.000)	(0.421)	(0.000)	(0.030)	(0.000)	(0.000)	(0.000)	(0.484)	(0.000)
Countries	5	11	16	19	15	20	25	10	31	4	8	27	11	24	35
Observations	70	158	233	271	219	285	359	145	444	60	115	389	161	343	504

***, **,*: significance levels of 1%, 5% and 10% respectively. AR(2): Second Order Autocorrelation test. OIR Over-identifying Restrictions test. Initial: lagged endogenous estimated coefficient. Wald: test for the joint significance of estimated coefficients. AC Absolute Convergence, CC Conditional Convergence, Yrs Years, UMI Upper Middle Income, LMI Lower Middle Income, MI Middle Income, LI Low Income. English English Common-law, French French Civil-law, Christ Christianity dominated countries, Islam Islam dominated countries, SSA Sub-Saharan Africa, NA North Africa, Oil Petroleum exporting countries, Non-oil: Countries with no significant exports in petroleum. Conflict: Countries with significant political instability. Non-co: Countries without significant political instability. The significance of bold values is twofold. 1) The significance of estimated coefficients and the Wald statistics. 2) The failure to reject the null hypotheses of: a) no autocorrelation in the AR(1) and AR(2) tests and; b) the validity of the instruments in the Sargan OIR test

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