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Illicit financial flows and the Global South: A review of methods and evidence

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  • Kasper Brandt

Abstract

Illicit financial flows (IFFs) constitute a major challenge for development in the Global South, as domestic resource mobilization is imperative for providing crucial public services. While several methods offer to measure the extent of IFFs, each has its benefits and drawbacks. Critically, methods based on the balance of payments identity may capture licit as well as illicit flows, and a method based on macroeconomic trade discrepancies suffers from doubtful assumptions.

Suggested Citation

  • Kasper Brandt, 2020. "Illicit financial flows and the Global South: A review of methods and evidence," WIDER Working Paper Series wp-2020-169, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2020-169
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    File URL: https://www.wider.unu.edu/sites/default/files/Publications/Working-paper/PDF/wp2020-169.pdf
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    References listed on IDEAS

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    Cited by:

    1. Saila Stausholm & Petr Janský & Marek Šedivý, 2022. "Illicit financial flows and country-by-country reporting in extractive industries," WIDER Working Paper Series wp-2022-76, World Institute for Development Economic Research (UNU-WIDER).
    2. Joshua Adeyemi Afolabi, 2024. "Does illicit financial flows crowd‐out domestic investment? Evidence from Sub‐Saharan Africa economic regions," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 29(2), pages 1417-1431, April.
    3. Johnny Flentø & Leonardo Santos Simao, 2022. "Illicit Financial Flows - Illicit drug trafficking and tax evasion," DERG working paper series 22-16, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).
    4. Johnny Flentø & Leonardo Santos Simao, 2022. "llicit Financial Flows - The illusion of a common denominator," DERG working paper series 22-15, University of Copenhagen. Department of Economics. Development Economics Research Group (DERG).

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    Keywords

    Illicit financial flows; Tax havens; Multinational firms; Profit shifting;
    All these keywords.

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