GTAP Resources: Resource Display
| GTAP Resource #4192 |
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"Illicit Financial Flows from Africa through Trade Mispricing and assessing their incidence on African economies" Authors: Mevel, Simon, Siope Vakataki 'Ofa and Stephen Karingi Abstract Capital flights from developing countries have increased tremendously in the last decade and a large portion of these flows occurs via illicit means. Illicit financial flows (IFF) can usually be broken down into three main components: 1) Corruption, which is the proceeds from theft and bribery by government officials; 2) Proceeds from criminal activities, including drug trading, racketeering, counterfeiting, contraband, and terrorist financing; 3) Proceeds from commercial tax evasion mainly through trade mis-pricing and laundered commercial transactions by multinational corporations (MNCs) (UNECA, 2012). This presentation presents a revisited methodology to estimate IFF through trade mis-pricing from Africa at the sector level. Detailed results from the application of the methodology are also provided and discussed. These are complemented by a Computable General Equilibrium analysis aiming at assessing the economic impacts on African economies from a possible return of IFF losses into Africa. Results indicate that the massive amount of financial resources illegally lost by Africa are in fact highly concentrated in a few countries and sectors –essentially extractive and mining industries– and benefit to a handful of countries. Moreover, losses associated to IFF seem hardly reversible suggesting the adopting of effective frameworks to prevent them in the first place. Keywords: Illicit financial flows, Trade mis-pricing, Under-invoicing, Over-invoicing, International Income Transfer, Computable General Equilibrium model, African trade policies |
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- Dynamic modeling - Economic development - Domestic policy analysis - Other data bases and data issues - The GTAP Data Base and extensions - Africa (Central) - Africa (East) - Africa (North) - Africa (Southern) - Africa (West) |
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Public Access  GTAP Resource 4192 (940.4 KB) Replicated: 0 time(s) Presentation PPT (1.4 MB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 4/15/2026 11:27:11 AM
