Can Better Land Governance Reduce Capital Flight and Brain Drain? Evidence from Cameroon
DOI:
https://doi.org/10.64229/7whr1s84Keywords:
Land governance, Capital flight, Brain drain, Institutional quality, Property rights, Cameroon, Two-stage least squaresAbstract
This study examines whether improved land governance is associated with lower levels of capital flight and brain drain in Cameroon. It develops a Cameroon Land Governance Index (CLGI) covering four dimensions: recognition of customary land rights, decentralization of land administration, transparency and anti-corruption mechanisms, and diaspora investment facilitation. Using annual data for 2000-2023, the study applies an instrumental-variable two-stage least squares (IV-2SLS) approach to estimate the relationships between land governance, capital flight, and the stock of highly educated Cameroonian migrants residing in OECD countries. The results indicate that stronger land governance is significantly associated with lower levels of both capital flight and brain drain. More secure, transparent, and predictable land institutions may strengthen confidence in domestic investment and reduce incentives to transfer financial resources abroad. Similarly, improved land governance may enhance domestic economic anchoring by supporting asset accumulation, entrepreneurship, and long-term investment opportunities for highly educated citizens. The study contributes to the literature by introducing a context-specific measure of land governance and by establishing an integrated empirical link between land institutions, financial-capital retention, and human-capital retention. The findings suggest that land-governance considerations may be relevant to broader strategies for institutional strengthening, investment promotion, diaspora mobilization, and sustainable development in Cameroon.
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Copyright (c) 2026 Marius Bendoma (Author)
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