An examination of capital flight from East Asian emerging economies: Paradise lost

Mashaallah Rahnama Moghadam, Hedayeh Samavati, David A. Dilts

Research output: Contribution to journalArticlepeer-review

5 Scopus citations

Abstract

This paper is an inquiry concerning capital flight and its contribution to the currency crises of the late 1990s in the South East Asia. The paper examines definitions and different approaches to measuring capital flight and develops a refined residual approach to the measurement of capital flight. Estimates of capital flight from the Region for the 1987 through 1997 period are then calculated and reported. An empirical model is estimated using panel data methods to ascertain economic and political determinants of capital flight. Among other things, the findings of the paper draw attention to corruption that may play a significant role in the international movement of capital. Therefore, greater openness of both private and public sector accounting practices is required to mitigate the disruptive impact of capital flight on the emerging economies.

Original languageEnglish
Pages (from-to)33-49
Number of pages17
JournalJournal of Asia-Pacific Business
Volume5
Issue number1
DOIs
StatePublished - 2003

Keywords

  • Capital flight
  • Corruption
  • Currency crises
  • Emerging economies
  • South East Asia

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