Global Financial Integrity

 

Archive for January, 2016

The Adverse Economic Consequences of Capital Flight and Illicit Flows from Developing Countries

Several recent studies have indicated that capital flight (defined as outflows of licit and illicit capital from developing countries) has serious consequences for economic performance and well-being. For example, a 2012 IMF study based on a panel regression of 103 developing countries over 2001-07, found that country-specific factors such as institutional quality and domestic credit markets have little impact on a country’s ability to translate capital inflows into domestic investment.

Read More SHARE