EconPapers    
Economics at your fingertips  
 

Nonlinear Threshold Effects of Institutional Quality on Capital Flight: Insights From Bangladesh

Nirmol Chandra Das, Mohammad Ashraful Ferdous Chowdhury () and Md. Nazrul Islam
Additional contact information
Nirmol Chandra Das: Department of Business Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh
Md. Nazrul Islam: Department of Business Administration, Shahjalal University of Science and Technology, Sylhet, Bangladesh

International Journal of Asian Business and Information Management (IJABIM), 2021, vol. 12, issue 1, 43-59

Abstract: Over the years, capital flight is a major concern for the countries where institutional quality is severely deficient. Almost all the literature emphasized the role of institutional quality on development. However, a possible question still remains unsettled what would be the optimum or threshold level of institutional quality that would create a milieu of least possible capital flight. The purpose of this study is to find the threshold value of institutional quality indicators and its impact on the capital flight of Bangladesh. Using the ICRG and WGI governance data over the period 1989 to 2016, the nonlinear regression proved that up to certain threshold level of institutional quality, interest rate differential reduces while economic growth stimulates net capital flight (NCF) of Bangladesh. Additionally, up to a certain threshold, level of corruption and interest rate differential lower NCF while beyond that level no effect exists. However, none of those independent variables affects NCF whenever the role of government stability threshold is considered.

Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
http://services.igi-global.com/resolvedoi/resolve. ... /IJABIM.20210101.oa3 (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:igg:jabim0:v:12:y:2021:i:1:p:43-59

Access Statistics for this article

International Journal of Asian Business and Information Management (IJABIM) is currently edited by Patricia Ordóñez de Pablos

More articles in International Journal of Asian Business and Information Management (IJABIM) from IGI Global
Bibliographic data for series maintained by Journal Editor ().

 
Page updated 2023-01-27
Handle: RePEc:igg:jabim0:v:12:y:2021:i:1:p:43-59