Effect of Capital Flight on Investment: Evidence from Emerging Markets
AbstractMuch of the discussion on international capital movements is directed toward studying the effects of foreign capital flows, whereas the implications of resident capital outflows (capital flight) from developing countries remain largely unanalyzed. Using a dynamic panel methodology for twenty-two emerging market economies between 1975 and 2000, this paper investigates the effect of capital flight on investment and how this effect changes with financial liberalization policies. The empirical findings indicate that capital flight reduces private investment dramatically but does not have any effect on public investment. However, no statistically significant impact of financial liberalization on the marginal effect of capital flight on investment is found.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by M.E. Sharpe, Inc. in its journal Emerging Markets Finance and Trade.
Volume (Year): 46 (2010)
Issue (Month): 6 (November)
Contact details of provider:
Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024
capital flight; emerging markets; financial liberalization; investment; resident capital outflows;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- A. Yasemin Yalta & A. Talha Yalta, 2011.
"Does Financial Liberalization Decrease Capital Flight? A Panel Causality Analysis,"
1102, TOBB University of Economics and Technology, Department of Economics.
- Yalta, A. Yasemin & Yalta, A. Talha, 2012. "Does financial liberalization decrease capital flight? A panel causality analysis," International Review of Economics & Finance, Elsevier, vol. 22(1), pages 92-100.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen).
If references are entirely missing, you can add them using this form.