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Robbing the Riches; Capital Flight, Institutions, and Instability

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  • Sweta Chaman Saxena
  • Meenakshi Rishi
  • Valerie Cerra

Abstract

Capital 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.

Suggested Citation

  • Sweta Chaman Saxena & Meenakshi Rishi & Valerie Cerra, 2005. "Robbing the Riches; Capital Flight, Institutions, and Instability," IMF Working Papers 05/199, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:05/199
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    References listed on IDEAS

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    Cited by:

    1. Raghbendra Jha & T. Palanivel, 2007. "Resource Augmentation for Meeting the Millennium Development Goals in the Asia Pacific Region," Departmental Working Papers 2007-02, The Australian National University, Arndt-Corden Department of Economics.
    2. repec:rss:jnljee:v3i1p2 is not listed on IDEAS

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