Robbing the Riches: Capital Flight, Institutions, and Instability

Sweta Saxena, Meenakshi Rishi and Valerie Cerra

No 2005/199, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; capital flight; flight of capital; debt; Institutions; Foreign Aid; debt accumulation; capital flight equation; impact capital flight; capital flight literature; Capital outflows; Foreign direct investment; Domestic savings; Currency crises; Africa; Global (search for similar items in EconPapers)
Pages: 39
Date: 2005-10-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=18555 (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:imf:imfwpa:2005/199

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().