Robbing the Riches : Capital Flight, Institutions, and Instability

Author/Editor:

Sweta Chaman Saxena ; Meenakshi Rishi ; Valerie Cerra

Publication Date:

October 1, 2005

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 05/199

Subject:

English

Publication Date:

October 1, 2005

ISBN/ISSN:

9781451862188/1018-5941

Stock No:

WPIEA2005199

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

39

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