LAUSR

Purpose This study aims at undertaking an institutional analysis of capital flight and examining the drivers of capital flight from Burundi. Design/methodology/approach Given the episodes of political instability and poor governance which have characterized Burundi’s landscape in the past decades, coupled with macroeconomic instability which has been prevailing, political, economic and institutional factors are used to explain the trend and magnitude of capital flight which were recorded. An econometric analysis using robust least squares is also used to examine the determinants of capital flight from Burundi. Findings The estimation results seem to be sensitive to capital flight measurement used, but in general they suggest that external debt, political instability and wars, as well as exports, are the main drivers of capital flight from Burundi. Research limitations/implications The findings of this study imply that to discourage capital flight, the Government of Burundi should promote peace and politic...