DETERMINANTS OF CAPITAL FLIGHT IN PAKISTAN

Basheer Ahmed () and Qaim Din Sahto
Additional contact information
Qaim Din Sahto: Iqra University Islamabad, Pakistan

IBT Journal of Business Studies (JBS), 2015, vol. 11, issue 2, 55-64

Abstract: Purpose This study investigates the relationship between Capital Flight CF and its Determinants Foreign Direct Investment FDI, External Debt ED, Exchange Rate ER, Foreign Reserves FR, Gross Domestic Product GDP growth, and Inflation I.Methodology/Sample CF from Pakistan is measured through the residual method which is the mostly used method in the literature.This method uses changes in ED, net FDI, Current Account Surplus CAS and changes in the FR to calculate the CF for the period of 1971 to 2011.Findings The results of the study show that there exist relationship between CF and its determinants in the long run whereas no relationship is found in the short run.Practical Implications CF refers to the condition when money, investment, funds and assets rapidly fly out of country due to economic and political events that discourage and cause individual investors and companies to lose their confidence in the host country and its economic and political conditions.

Keywords: CF; Gross Domestic Product; Inflation; Foreign Direct Investment; External Debt; Exchange Rate (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/11 ... %20in%20Pakistan.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:11:y:2015:i:2:p:55-64

DOI: 10.46745/ilma.ibtjbs.2015.112.5

Access Statistics for this article

More articles in IBT Journal of Business Studies (JBS) from Ilma University, Faculty of Management Science Contact information at EDIRC.
Bibliographic data for series maintained by Syed Kashif Rafi ().