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Capital Flight In The 1990s – Lessons From E. Europe


  • Angelos A. Antzoulatos
  • Theodosios Sampaniotis


We analyze capital flight from Eastern Europe in the 1990s, a problem that although was as significant, and possibly as detrimental to economic growth, as its 1980s Latin American predecessor, has received scant attention in the literature so far. Specifically, we employ five capital-flight measures used in earlier studies and apply a “general to specific” modeling approach in a panel of seventeen E. European countries, trying to uncover the main determinants of the problem. Though these determinants differ across the estimated models, three appear consistently significant: real exchange rate appreciation, inflation and budget deficits. Lastly, we discuss the implications of the empirical findings for the IMFsponsored economic stabilization programs.

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  • Angelos A. Antzoulatos & Theodosios Sampaniotis, 2003. "Capital Flight In The 1990s – Lessons From E. Europe," European Research Studies Journal, European Research Studies Journal, vol. 0(1-2), pages 35-50, January -.
  • Handle: RePEc:ers:journl:v:vi:y:2003:i:1-2:p:35-50

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    References listed on IDEAS

    1. Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
    2. Tor Jakob Klette & Samuel Kortum, 2004. "Innovating Firms and Aggregate Innovation," Journal of Political Economy, University of Chicago Press, vol. 112(5), pages 986-1018, October.
    3. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    4. Jovanovic, Boyan, 1982. "Selection and the Evolution of Industry," Econometrica, Econometric Society, vol. 50(3), pages 649-670, May.
    5. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD Publishing.
    6. Nelson, Richard R, 1986. "Institutions Supporting Technical Advance in Industry," American Economic Review, American Economic Association, vol. 76(2), pages 186-189, May.
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    Cited by:

    1. Liew, Siew-Ling, 2016. "Review on Determinants of Capital Flight," MPRA Paper 70445, University Library of Munich, Germany.

    More about this item


    Capital Flight; Eastern Europe;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe


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