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Review on Determinants of Capital Flight

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  • Liew, Siew-Ling

Abstract

Capital flight is the shift of one investment to another in search of greater prospect or increased returns. Capital flight is sometimes stimulated by a nation’s unfavorable conditions where the country may be undergoing high inflation or political turmoil. However, it is most commonly seen at times of currency instability. Most of the time, the outflows are large enough to affect a country’s entire financial system. Simply to say, such phenomenon is bad for the home country as it deters the economy. This is especially true for developing countries whereby the nation’s financial status is often not strong enough to sustain huge amount of capital flight.

Suggested Citation

  • Liew, Siew-Ling, 2016. "Review on Determinants of Capital Flight," MPRA Paper 70445, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:70445
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    References listed on IDEAS

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    1. Mercy W. Mwangi & Amos G. Njuguna & George O. Achoki, 2019. "Relationship between corruption and capital flight in Kenya: 1998-2018," International Journal of Research in Business and Social Science (2147-4478), Center for the Strategic Studies in Business and Finance, vol. 8(5), pages 237-250, September.

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    More about this item

    Keywords

    Literature review; capital flight; economic growth;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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