Robbing the Riches: Capital Flight, Institutions, and Instability
AbstractCapital 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.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 05/199.
Date of creation: 01 Oct 2005
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