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INSTITUTIONAL QUALITY, CAPITAL FLIGHT AND CAPITAL FLOWS

양두용|백승관
한국경제학회 (The Korean Economic Association)|2010.06|The Korean Economic Review|제26권 제1호|pp. 121-155

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참고문헌

키워드

political riskCapital flightinstitutional quality
주제분류경제학

초록

This paper examines the determinants of capital flight using panel data for 53 developing and 21 developed countries from 1984-2004. Our empirical results show, first, that institutional quality is a key determinant of capital flight for developing countries. Second, capital control is not an effective tool to mitigate flight of capital. Capital flees less to the extent that a country is financially more open and more developed. Third, capital flight increases with the standard of living up to a certain level of income, but thereafter decreases as income rises. Finally, upgrading institutional quality not only encourages private capital inflows but also discourages capital flight.

Abstract

This paper examines the determinants of capital flight using panel data for 53 developing and 21 developed countries from 1984-2004. Our empirical results show, first, that institutional quality is a key determinant of capital flight for developing countries. Second, capital control is not an effective tool to mitigate flight of capital. Capital flees less to the extent that a country is financially more open and more developed. Third, capital flight increases with the standard of living up to a certain level of income, but thereafter decreases as income rises. Finally, upgrading institutional quality not only encourages private capital inflows but also discourages capital flight.

참고문헌 (35)

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