Capital Flight and War

Davies, Victor A.B.

doi:10.1596/1813-9450-4210

Publication:
Capital Flight and War

dc.contributor.author	Davies, Victor A.B.
dc.date.accessioned	2012-06-04T19:53:39Z
dc.date.available	2012-06-04T19:53:39Z
dc.date.issued	2007-04
dc.description.abstract	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.	en
dc.identifier	http://documents.worldbank.org/curated/en/2007/04/7537885/capital-flight-war
dc.identifier.uri	http://hdl.handle.net/10986/7046
dc.language	English
dc.publisher	World Bank, Washington, DC
dc.relation.ispartofseries	Policy Research Working Paper; No. 4210
dc.rights	CC BY 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	http://creativecommons.org/licenses/by/3.0/igo/
dc.subject	ACCOUNTING
dc.subject	ACCRUALS
dc.subject	ASSETS
dc.subject	AVERAGE LEVEL
dc.subject	BANKING SYSTEM
dc.subject	BANKS
dc.subject	BASKET OF GOODS
dc.subject	BENCHMARK
dc.subject	BENCHMARK INTEREST RATE
dc.subject	BLACK MARKET
dc.subject	BLACK MARKET PREMIUM
dc.subject	CAPITAL BASE
dc.subject	CAPITAL CONTROLS
dc.subject	CAPITAL FLIGHT
dc.subject	CAPITAL INFLOWS
dc.subject	CAPITALIZATION
dc.subject	CASH ACCOUNTING
dc.subject	CONSUMER PRICE INDEX
dc.subject	DEBT
dc.subject	DEPENDENT VARIABLE
dc.subject	DEVALUATION
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT REPORT
dc.subject	DIRECT INVESTMENT
dc.subject	DOMESTIC INVESTMENT
dc.subject	DYNAMIC PANEL
dc.subject	ECONOMETRIC ANALYSIS
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC ACTIVITY
dc.subject	ECONOMIC CONSEQUENCES
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC STUDIES
dc.subject	EMPIRICAL EVIDENCE
dc.subject	EMPIRICAL WORK
dc.subject	EMPLOYMENT
dc.subject	EMPLOYMENT EQUATIONS
dc.subject	ESTIMATION RESULTS
dc.subject	ESTIMATION TECHNIQUES
dc.subject	EXCHANGE RATE
dc.subject	EXOGENOUS VARIABLES
dc.subject	EXPECTED RETURN
dc.subject	EXPORTS
dc.subject	EXTERNAL BORROWING
dc.subject	EXTERNAL DEBT
dc.subject	EXTERNAL FACTORS
dc.subject	FACTOR ENDOWMENTS
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL MARKETS
dc.subject	FLIGHT OF CAPITAL
dc.subject	FOREIGN ASSETS
dc.subject	FOREIGN CAPITAL
dc.subject	FOREIGN CAPITAL FLOWS
dc.subject	FOREIGN DIRECT INVESTMENT
dc.subject	FOREIGN EXCHANGE
dc.subject	FOREIGN INVESTMENT
dc.subject	FORMAL ANALYSIS
dc.subject	FREE TRADE
dc.subject	GDP
dc.subject	HIGH INFLATION
dc.subject	HUMAN CAPITAL
dc.subject	INCOME
dc.subject	INCOME GROWTH
dc.subject	INCOME LEVELS
dc.subject	INFLATION
dc.subject	INFLATION RATE
dc.subject	INFLATION RATES
dc.subject	INFORMATION ASYMMETRY
dc.subject	INTEREST PAYMENTS
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL DEBT
dc.subject	INTERNATIONAL FINANCE
dc.subject	INTERNATIONAL MONETARY FUND
dc.subject	INVESTMENT INCOME
dc.subject	LAGGED DEPENDENT
dc.subject	LAGGED LEVELS
dc.subject	LDCS
dc.subject	LOW INFLATION
dc.subject	MACROECONOMIC CONDITIONS
dc.subject	MACROECONOMIC ENVIRONMENT
dc.subject	MACROECONOMIC STABILITY
dc.subject	NEGATIVE EFFECT
dc.subject	NOMINAL CAPITAL
dc.subject	OPEN ECONOMY
dc.subject	OPPORTUNITY COST
dc.subject	OVERVALUATION
dc.subject	PENALTIES
dc.subject	PER CAPITA INCOME
dc.subject	POLICY RESEARCH
dc.subject	POLITICAL ECONOMY
dc.subject	PORTFOLIO
dc.subject	PORTFOLIO INVESTMENT
dc.subject	PORTFOLIOS
dc.subject	PRICE LEVELS
dc.subject	PRIVATE CAPITAL
dc.subject	PRODUCTIVITY
dc.subject	PUBLIC DEBT
dc.subject	RATES OF RETURN
dc.subject	REAL EXCHANGE RATE
dc.subject	REDUCING INFLATION
dc.subject	RISK PREMIUMS
dc.subject	SERIAL CORRELATION
dc.subject	TAX POLICY
dc.subject	TAX REVENUES
dc.subject	TRADE REGIME
dc.subject	TRANSACTIONS COSTS
dc.subject	TREASURY BILL
dc.subject	TRUST COMPANY
dc.subject	WEALTH
dc.title	Capital Flight and War	en
dspace.entity.type	Publication
okr.doctype	Publications & Research :: Policy Research Working Paper
okr.doctype	Publications & Research
okr.docurl	http://documents.worldbank.org/curated/en/2007/04/7537885/capital-flight-war
okr.globalpractice	Macroeconomics and Fiscal Management
okr.globalpractice	Poverty
okr.globalpractice	Finance and Markets
okr.globalpractice	Governance
okr.identifier.doi	10.1596/1813-9450-4210
okr.identifier.externaldocumentum	000016406_20070413153433
okr.identifier.internaldocumentum	7537885
okr.identifier.report	WPS4210
okr.language.supported	en
okr.pdfurl	http://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/04/13/000016406_20070413153433/Rendered/PDF/wps4210.pdf	en
okr.topic	Poverty Reduction :: Achieving Shared Growth
okr.topic	Economic Theory and Research
okr.topic	Law and Development :: Settlement of Investment Disputes
okr.topic	Banks and Banking Reform
okr.topic	Macroeconomics and Economic Growth :: Investment and Investment Climate
okr.topic	Finance and Financial Sector Development
okr.unit	Development Research Group (DECRG)
okr.volume	1 of 1
relation.isSeriesOfPublication	26e071dc-b0bf-409c-b982-df2970295c87