Effect of Capital Flight on Investment: Evidence from Emerging Markets
Much 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.
Volume (Year): 46 (2010)
Issue (Month): 6 (November)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=111024 |
When requesting a correction, please mention this item's handle: RePEc:mes:emfitr:v:46:y:2010:i:6:p:40-54. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)The email address of this maintainer does not seem to be valid anymore. Please ask Chris Nguyen to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.