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Capital flight, saving rate and the golden rule level of capital: policy recommendations for Latin America countries

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  • Joaquin, Vespignani L

Abstract

This paper seeks to analyse the determinants of capital flight in selected Latin American countries throughout the 1990s, and gives some insights into what economic policies would be adequate under capital flight conditions. Finding, empirically, the saving rate to be a new determinant of capital flight, this paper discusses whether or not achieving the golden rule level of capital would be desirable and what source of government revenue (direct or indirect taxation) would be appropriate under those conditions.

Suggested Citation

  • Joaquin, Vespignani L, 2008. "Capital flight, saving rate and the golden rule level of capital: policy recommendations for Latin America countries," MPRA Paper 43824, University Library of Munich, Germany, revised Dec 2008.
    • Handle: RePEc:pra:mprapa:43824
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    References listed on IDEAS

    as
    1. Michael P. Dooley, 1988. "Capital Flight: A Response to Differences in Financial Risks," IMF Staff Papers, Palgrave Macmillan, vol. 35(3), pages 422-436, September.
    2. Dooley, Michael & Helkie, William & Tryon, Ralph & Underwood, John, 1986. "An analysis of external debt positions of eight developing countries through 1990," Journal of Development Economics, Elsevier, vol. 21(2), pages 283-318, May.
    3. Erbe, Susanne, 1985. "The flight of capital from developing countries," Intereconomics – Review of European Economic Policy (1966 - 1988), ZBW - Leibniz Information Centre for Economics, vol. 20(6), pages 268-275.
    4. Niranjan Chipalkatti & Meenakshi Rishi, 2001. "External Debt and Capital Flight in the Indian Economy," Oxford Development Studies, Taylor & Francis Journals, vol. 29(1), pages 31-44.
    5. Suhas L Ketkar & Kusum W. Ketkar, 1989. "Determinants Of Capital Flight From Argentina, Brazil, And Mexico," Contemporary Economic Policy, Western Economic Association International, vol. 7(3), pages 11-29, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Capital Flight; Determinant; Golden Rule; Direct Taxation; Indirect Taxation;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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