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Capital flight from the Philippines, 1970-2002

Author

Listed:
  • Edsel L. Beja

    (Department of Economics, Ateneo de Manila University, Quezon City)

Abstract

Capital flight is defined as the movement of capital from resource-scarce developing countries to avoid social controls. It is measured as net unrecorded capital outflow, or the residual between officially recorded uses and sources of funds. Total capital flight from the Philippines was estimated at USD 138 billion (in 1995 constant prices) for the period 1970-2002. Including imputed interest earnings, the stock of capital flight as of 2002 was USD 218 billion. Indeed, by any yardstick, these figures are significant amounts of lost resources that could have been utilized to generate additional output and jobs in the country. Were it not for capital flight, the Philippines would have reached an economic performance like the Asian economic tigers.

Suggested Citation

  • Edsel L. Beja, 2005. "Capital flight from the Philippines, 1970-2002," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 42(2), pages 1-26, December.
  • Handle: RePEc:phs:prejrn:v:42:y:2005:i:2:p:1-26
    as

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    File URL: http://pre.econ.upd.edu.ph/index.php/pre/article/view/202/592
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    References listed on IDEAS

    as
    1. Raul V. Fabella, 2000. "The Soft State : The Market and Governance," Philippine Review of Economics, University of the Philippines School of Economics and Philippine Economic Society, vol. 37(1), pages 1-11, June.
    2. Reinhart, Carmen & Calvo, Guillermo, 1999. "Inversión de las corrientes de capital, tipo de cambio y dolarización [Capital Flow Reversals, the Exchange Rate Debate, and Dollarization]," MPRA Paper 13692, University Library of Munich, Germany.
    3. Guillermo A. Calvo, 1998. "CAPITAL FLOWS AND CAPITAL-MARKET CRISES: The Simple Economics of Sudden Stops," Journal of Applied Economics, Taylor & Francis Journals, vol. 1(1), pages 35-54, November.
    4. Boyce, James K., 1992. "The revolving door? External debt and capital flight: A Philippine case study," World Development, Elsevier, vol. 20(3), pages 335-349, March.
    5. Boyce, James K. & Zarsky, Lyuba, 1988. "Capital Flight from the Philippines, 1962-1986," Philippine Journal of Development JPD 1988 Vol. XV No. 2-c, Philippine Institute for Development Studies.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    capital flight; Philippines;

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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