Robbing the Riches: Capital Flight, Institutions, and Instability
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
Summary:
Capital flight may undermine economic growth and the effectiveness of debt relief and foreign aid. This paper is the first attempt to test whether unsound macroeconomic policies or weak institutions lead to capital flight, using panel data for a large set of developing, emerging market and transition countries. In addition, the paper tests the revolving door hypothesis that links debt accumulation and capital flight, and analyzes the contribution of institutions to several channels in this relationship.
Series:
Working Paper No. 2005/199
Subject:
Balance of payments Capital outflows Currency crises Domestic savings External debt Financial crises Foreign direct investment National accounts
English
Publication Date:
October 1, 2005
ISBN/ISSN:
9781451862188/1018-5941
Stock No:
WPIEA2005199
Pages:
39
Please address any questions about this title to publications@imf.org