Capital Flight and War

The author provides empirical evidence on the effects of inflation on post-war capital flight flows. He tests the hypothesis that inflation has a positive additional impact on capital flight flows after war. He uses a new panel dataset of 77 develo...

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Main Author:	Davies, Victor A.B.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING ACCRUALS ASSETS AVERAGE LEVEL BANKING SYSTEM BANKS BASKET OF GOODS BENCHMARK BENCHMARK INTEREST RATE BLACK MARKET BLACK MARKET PREMIUM CAPITAL BASE CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITALIZATION CASH ACCOUNTING CONSUMER PRICE INDEX DEBT DEPENDENT VARIABLE DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DIRECT INVESTMENT DOMESTIC INVESTMENT DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC STUDIES EMPIRICAL EVIDENCE EMPIRICAL WORK EMPLOYMENT EMPLOYMENT EQUATIONS ESTIMATION RESULTS ESTIMATION TECHNIQUES EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED RETURN EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FACTORS FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL MARKETS FLIGHT OF CAPITAL FOREIGN ASSETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FORMAL ANALYSIS FREE TRADE GDP HIGH INFLATION HUMAN CAPITAL INCOME INCOME GROWTH INCOME LEVELS INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRY INTEREST PAYMENTS INTEREST RATES INTERNATIONAL DEBT INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVESTMENT INCOME LAGGED DEPENDENT LAGGED LEVELS LDCS LOW INFLATION MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY NEGATIVE EFFECT NOMINAL CAPITAL OPEN ECONOMY OPPORTUNITY COST OVERVALUATION PENALTIES PER CAPITA INCOME POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIOS PRICE LEVELS PRIVATE CAPITAL PRODUCTIVITY PUBLIC DEBT RATES OF RETURN REAL EXCHANGE RATE REDUCING INFLATION RISK PREMIUMS SERIAL CORRELATION TAX POLICY TAX REVENUES TRADE REGIME TRANSACTIONS COSTS TREASURY BILL TRUST COMPANY WEALTH
Online Access:	http://documents.worldbank.org/curated/en/2007/04/7537885/capital-flight-war http://hdl.handle.net/10986/7046

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spelling	okr-10986-70462021-04-23T14:02:33Z Capital Flight and War Davies, Victor A.B. ACCOUNTING ACCRUALS ASSETS AVERAGE LEVEL BANKING SYSTEM BANKS BASKET OF GOODS BENCHMARK BENCHMARK INTEREST RATE BLACK MARKET BLACK MARKET PREMIUM CAPITAL BASE CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITALIZATION CASH ACCOUNTING CONSUMER PRICE INDEX DEBT DEPENDENT VARIABLE DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DIRECT INVESTMENT DOMESTIC INVESTMENT DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC STUDIES EMPIRICAL EVIDENCE EMPIRICAL WORK EMPLOYMENT EMPLOYMENT EQUATIONS ESTIMATION RESULTS ESTIMATION TECHNIQUES EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED RETURN EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FACTORS FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL MARKETS FLIGHT OF CAPITAL FOREIGN ASSETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FORMAL ANALYSIS FREE TRADE GDP HIGH INFLATION HUMAN CAPITAL INCOME INCOME GROWTH INCOME LEVELS INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRY INTEREST PAYMENTS INTEREST RATES INTERNATIONAL DEBT INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVESTMENT INCOME LAGGED DEPENDENT LAGGED LEVELS LDCS LOW INFLATION MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY NEGATIVE EFFECT NOMINAL CAPITAL OPEN ECONOMY OPPORTUNITY COST OVERVALUATION PENALTIES PER CAPITA INCOME POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIOS PRICE LEVELS PRIVATE CAPITAL PRODUCTIVITY PUBLIC DEBT RATES OF RETURN REAL EXCHANGE RATE REDUCING INFLATION RISK PREMIUMS SERIAL CORRELATION TAX POLICY TAX REVENUES TRADE REGIME TRANSACTIONS COSTS TREASURY BILL TRUST COMPANY WEALTH The author provides empirical evidence on the effects of inflation on post-war capital flight flows. He tests the hypothesis that inflation has a positive additional impact on capital flight flows after war. He uses a new panel dataset of 77 developing countries, of which 35 experienced at least one episode of war between 1971 and 2000. The author uses a range of estimation methods and four capital flight measures-Cline, World Bank Residual, Morgan Guarantee, and Dooley. The results consistently support the research hypothesis: Post-war inflation increases annual capital flight flows by about 0.005 to 0.01 percentage points of GDP. This effect is substantial in total at high inflation rates. The implication is that low inflation helps to curb capital flight in post-conflict economies. 2012-06-04T19:53:39Z 2012-06-04T19:53:39Z 2007-04 http://documents.worldbank.org/curated/en/2007/04/7537885/capital-flight-war http://hdl.handle.net/10986/7046 English Policy Research Working Paper; No. 4210 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING ACCRUALS ASSETS AVERAGE LEVEL BANKING SYSTEM BANKS BASKET OF GOODS BENCHMARK BENCHMARK INTEREST RATE BLACK MARKET BLACK MARKET PREMIUM CAPITAL BASE CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITALIZATION CASH ACCOUNTING CONSUMER PRICE INDEX DEBT DEPENDENT VARIABLE DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DIRECT INVESTMENT DOMESTIC INVESTMENT DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC STUDIES EMPIRICAL EVIDENCE EMPIRICAL WORK EMPLOYMENT EMPLOYMENT EQUATIONS ESTIMATION RESULTS ESTIMATION TECHNIQUES EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED RETURN EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FACTORS FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL MARKETS FLIGHT OF CAPITAL FOREIGN ASSETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FORMAL ANALYSIS FREE TRADE GDP HIGH INFLATION HUMAN CAPITAL INCOME INCOME GROWTH INCOME LEVELS INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRY INTEREST PAYMENTS INTEREST RATES INTERNATIONAL DEBT INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVESTMENT INCOME LAGGED DEPENDENT LAGGED LEVELS LDCS LOW INFLATION MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY NEGATIVE EFFECT NOMINAL CAPITAL OPEN ECONOMY OPPORTUNITY COST OVERVALUATION PENALTIES PER CAPITA INCOME POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIOS PRICE LEVELS PRIVATE CAPITAL PRODUCTIVITY PUBLIC DEBT RATES OF RETURN REAL EXCHANGE RATE REDUCING INFLATION RISK PREMIUMS SERIAL CORRELATION TAX POLICY TAX REVENUES TRADE REGIME TRANSACTIONS COSTS TREASURY BILL TRUST COMPANY WEALTH
spellingShingle	ACCOUNTING ACCRUALS ASSETS AVERAGE LEVEL BANKING SYSTEM BANKS BASKET OF GOODS BENCHMARK BENCHMARK INTEREST RATE BLACK MARKET BLACK MARKET PREMIUM CAPITAL BASE CAPITAL CONTROLS CAPITAL FLIGHT CAPITAL INFLOWS CAPITALIZATION CASH ACCOUNTING CONSUMER PRICE INDEX DEBT DEPENDENT VARIABLE DEVALUATION DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS DEVELOPMENT REPORT DIRECT INVESTMENT DOMESTIC INVESTMENT DYNAMIC PANEL ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ECONOMIC CONSEQUENCES ECONOMIC DEVELOPMENT ECONOMIC STUDIES EMPIRICAL EVIDENCE EMPIRICAL WORK EMPLOYMENT EMPLOYMENT EQUATIONS ESTIMATION RESULTS ESTIMATION TECHNIQUES EXCHANGE RATE EXOGENOUS VARIABLES EXPECTED RETURN EXPORTS EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL FACTORS FACTOR ENDOWMENTS FINANCIAL CRISIS FINANCIAL MARKETS FLIGHT OF CAPITAL FOREIGN ASSETS FOREIGN CAPITAL FOREIGN CAPITAL FLOWS FOREIGN DIRECT INVESTMENT FOREIGN EXCHANGE FOREIGN INVESTMENT FORMAL ANALYSIS FREE TRADE GDP HIGH INFLATION HUMAN CAPITAL INCOME INCOME GROWTH INCOME LEVELS INFLATION INFLATION RATE INFLATION RATES INFORMATION ASYMMETRY INTEREST PAYMENTS INTEREST RATES INTERNATIONAL DEBT INTERNATIONAL FINANCE INTERNATIONAL MONETARY FUND INVESTMENT INCOME LAGGED DEPENDENT LAGGED LEVELS LDCS LOW INFLATION MACROECONOMIC CONDITIONS MACROECONOMIC ENVIRONMENT MACROECONOMIC STABILITY NEGATIVE EFFECT NOMINAL CAPITAL OPEN ECONOMY OPPORTUNITY COST OVERVALUATION PENALTIES PER CAPITA INCOME POLICY RESEARCH POLITICAL ECONOMY PORTFOLIO PORTFOLIO INVESTMENT PORTFOLIOS PRICE LEVELS PRIVATE CAPITAL PRODUCTIVITY PUBLIC DEBT RATES OF RETURN REAL EXCHANGE RATE REDUCING INFLATION RISK PREMIUMS SERIAL CORRELATION TAX POLICY TAX REVENUES TRADE REGIME TRANSACTIONS COSTS TREASURY BILL TRUST COMPANY WEALTH Davies, Victor A.B. Capital Flight and War
relation	Policy Research Working Paper; No. 4210
description	The author provides empirical evidence on the effects of inflation on post-war capital flight flows. He tests the hypothesis that inflation has a positive additional impact on capital flight flows after war. He uses a new panel dataset of 77 developing countries, of which 35 experienced at least one episode of war between 1971 and 2000. The author uses a range of estimation methods and four capital flight measures-Cline, World Bank Residual, Morgan Guarantee, and Dooley. The results consistently support the research hypothesis: Post-war inflation increases annual capital flight flows by about 0.005 to 0.01 percentage points of GDP. This effect is substantial in total at high inflation rates. The implication is that low inflation helps to curb capital flight in post-conflict economies.
format	Publications & Research :: Policy Research Working Paper
author	Davies, Victor A.B.
author_facet	Davies, Victor A.B.
author_sort	Davies, Victor A.B.
title	Capital Flight and War
title_short	Capital Flight and War
title_full	Capital Flight and War
title_fullStr	Capital Flight and War
title_full_unstemmed	Capital Flight and War
title_sort	capital flight and war
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/04/7537885/capital-flight-war http://hdl.handle.net/10986/7046
_version_	1764401789066543104

Capital Flight and War

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