Naslov
The costs of moving money across borders and the volume of capital flight: the case of Russia and other CIS countries

Autori
Brada, Josef C. ; Kutan, Ali M. ; Vukšić, Goran

Izvornik
Review of world economics (1610-2878) 147 (2011), 4; 717-744

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
capital flight ; illicit money flows ; financial sector liberalization ; Russia ; Commonwealth of Independent States

Sažetak
We estimate capital flight from seven countries of the Commonwealth of Independent States for the period 1995–2005. In some countries capital flight is large and growing, but other countries, despite similar macroeconomic and political circumstances, have little capital flight. We develop a model of capital flight that incorporates costs of moving money to offshore locations and show that such costs are an important determinant of capital flight. Liberalizing the trade and financial sectors accelerates capital flight by making it easier to move capital abroad. In the short run, greater regulation rather than external sector liberalization appears to have more potential to combat capital flight.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA