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The study established the relationship between Foreign Direct investments and Capital Flight in Kenya over the period 1998 to 2018. Quarterly time series data for calculation of capital flight and Gross Domestic Product growth rate, inflation and Foreign Direct investments were collected from the Central Bank of Kenya and Kenya National Bureau of Statistics. Two Autoregressive Distributed-lagged model models were fitted. Regression coefficients for FDI were 0.44 and -0.040 in the short run and -0.501 in the long run. The p values were 0.008 and 0.015 and 0.654 respectively. The results indicated that a 1 % increase in current quarters FDI would lead to a 0.44% increase in capital flight and a 1% increase in previous quarters FDI would lead to a decrease of 0.040% in capital flight. Regression results showed a coefficient of 0.006 and - 0.004 for Gross Domestic Product growth rate in the short run, and 0.038 in the long run. The p values were 0.422, and 0.638 and 0.749 respectively meaning that Gross Domestic Product growth rate and the capital flight had no significant relationship. Regression results showed a coefficient of -0.001 and -0.005 for inflation in the short run and -0.088 for inflation for the long run. The p values were 0.844 and 0.363 and 0.253 respectively. This indicated that inflation and the capital flight had an insignificant relationship. The study recommends that government adopts strategic management on FDI inflow transactions to avoid possible leakages of the same money going out as capital flight.

The phenomenon of capital flight is triggered by two biggest financial scandals, Panama Papers, and Paradise Papers. The impacts of this phenomenon can erode the tax base and contribute to the distribution of income from developing countries to developed countries. Therefore, the purpose of this study is learning of Indonesia's capital flight and analyzing more deeply the causes of capital flight for the Indonesian economy in the period 2009 until 2017. The data used in this research is secondary data from BI, BPS, and OECD. The independent variables are the budget deficit ratio, economic growth, inflation, exchange rate growth, and dummy sovereign rating. The measurement of capital flight in this research uses residual approach, while the estimation techniques use Ordinary Least Squares (OLS). Empirical results of this research conclude that the amount of capital flight in Indonesia increased quite rapidly since the first quarter of 2009 until the second quarter of 2011 compared to next periods. Furthermore, macroeconomic factors used as independent variables are not strong enough to explain capital flight in Indonesia.