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This study aims to offer an up-to-date estimate of capital flight from selected emerging Asian economies and examine the anti-growth phenomenon of capital flight by using annual data for the period 1981–2019.

The study relies on residual methods to derive the estimate of capital flight with necessary adjustments. It then applies the autoregressive distributed lag Bounds testing approach in examining the impact of capital flight on the economic growth of Asian emerging economies.

The study identifies capital flight as the attributor to the slower economic growth of the selected emerging economies of Asia.

Apart from appropriate policies addressing the issues causing capital flight, unleashing the way of private sector-led growth of the emerging countries with necessary policy, infrastructural, institutional and regulatory support can rather help them retain and repatriate domestic capital.

The capital flight estimates in earlier studies are antithetical as they differ in terms of definition and estimation procedure. Again, the growth effect of capital flight in these economies has received meager attention in research and policy debates. Furthermore, being country-specific or region-specific, existing studies are unable to compare the growth effect of capital flight for different emerging economies in this region. Examining the growth effects for a large number of countries separately based on a common estimate of capital flight can resolve these issues that this study aims to do.

This study aims to estimate the magnitude of capital flight from Pakistan. Furthermore, it analyzes the impact of capital flight on the economic growth of Pakistan in the short and long run.

This study uses the World Bank’s residual method to estimate the magnitude of capital flight from Pakistan during 1976–2018. This study used the autoregressive distributed lag (ARDL) approach to estimate the effect of capital flight on the economic growth of Pakistan.

ARDL results revealed a negative and statistically significant relationship between different measures of capital flight and economic growth in the long run. However, this relationship is not statistically significant in the short run. After correction for external borrowing and trade misinvoicing, this study finds that the total capital flight from Pakistan during the study period amounted to US$333bn (in 2010 dollars). With accrued interest earnings, the stock of capital amounted to US$124,768bn, significantly higher than the accumulated stock of long-term debt, which amounted to US$1,231bn during the study period indicating that Pakistan faces a severe challenge of capital flight.

This study calculates the magnitude of capital flight from Pakistan for the first time. Furthermore, this study also calculates the magnitude of capital flight for military and democratic regimes. This study suggests many policy proposals to deal with the challenge of capital flight.

The purpose of this paper is to investigate the effect of financial development on the Doing Business and capital flight contagion. And further, this study determines the threshold beyond which financial development reduces capital flight.

A two-step system generalized methods of moment empirical model with linear interaction between Doing Business and financial development was estimated. This study used data on 26 countries over 12 years (2004–2015).

The main results indicated that, although Doing Business had a significant positive effect on capital flight, the interactive term had a significant adverse effect on capital flight. This outcome suggests that to reduce capital flight, a well-reformed and efficient business environment should be embedded with an efficient, stable and well-developed financial sector. In addition, the authors found only South Africa has a robust financial framework beyond the threshold of 0.383, whereas Congo, Rep., Rwanda, Malawi, Sierra Leone and Congo, Dem. Rep. had the weakest financial system and sector in Sub-Saharan Africa.

This study recommends that policymakers should initiate policies that would enhance financial development.

This study’s main contributions are that the authors estimated the threshold beyond which financial development helps the business environment reduce the rate of capital flight. Further, the authors have shown that financial development is a catalyst to propel the deterioration powers of the business environment against capital flight. Also, the authors have estimated the long-run effect of the variables of interest on capital flight.

The purpose of this paper is to investigate the effect of corruption and institutional governance indicators on capital flight in Sub-Saharan Africa.

Using a Portfolio Choice Framework, the study employs two different estimation techniques as Generalized Method of Moment and Fixed Effect Regression on panel data sets of 32 countries in Sub-Saharan Africa over the period 2000-2012.

The variable of interest, corruption, retains its expected positive sign and statistically significant across all the estimations. The relationship remains very strong even when other equally important institutional variables such as regime durability, rule of law and independence of the executive are taken into account. This suggests that a higher perception of corruption among public authorities as in bribery, kickbacks in public procurement, embezzlement of public funds, among others facilitates an increase in capital outflow from SSA. The findings further indicate that regime durability and rule of law are important institutional variables that also significantly influence capital flights in SSA.

The findings imply that institutional reforms should be encouraged if SSA is to win the war against corruption and by extension against capital flight. There should be a creation of democratic environment and good governance practices that foster stronger governance institutions, decline in corruption and better domestic investment climate to help reverse the high spate of capital flight in the region.

The main value of this paper is using the portfolio choice framework to analyze the relationship between capital flight and corruption in the Sub-Saharan African context.

This study aims to undertake an institutional analysis of capital flight and examine the drivers of capital flight from Burundi.

Given the episodes of political instability and poor governance which have characterized Burundi’s landscape in the past decades, coupled with macroeconomic instability which has been prevailing, political, economic and institutional factors are used to explain the trend and magnitude of capital flight which were recorded. An econometric analysis using robust least squares is also used to examine the determinants of capital flight from Burundi.

The estimation results seem to be sensitive to capital flight measurement used, but in general, they suggest that external debt, political instability and wars, as well as exports, are the main drivers of capital flight from Burundi.

The findings of this study imply that to discourage capital flight, the government of Burundi should promote peace and political stability. In addition, more responsibility, more transparency and accountability are required from the government of Burundi in managing resources from external debt. Moreover, some actions are needed to fight trade misinvoicing, which was seen to be a major channel of capital flight from Burundi. It is however to be acknowledged that our econometric analysis results might not be robust because of data limitations related to data availability on capital flight for only the period 1985-2013.

This study contributes to the existing capital flight literature in two ways. First, by undertaking the first ever country-specific study focusing on Burundi, and second, by undertaking an institutional analysis of capital flight to understand the political, economic and institutional issues behind capital flight from Burundi. The focus in this study is on Burundi because of the burden that capital flight imposes on the country already impoverished.

The purpose of this paper is to investigate the effect of corruption control on capital flight in the least corrupt African countries.

Using panel data covering the period of 1996-2010.

The results show that the extent of corruption, the total natural resources rent are statistically significant and affect positively the capital across the pooled, random and fixed effects. Inflation and economic growth are also found to have a negative impact on capital flight. Moreover, the exchange rate has a negative and significant effect on capital flight.

The findings of this study suggest that the extent of corruption control by responsible institutions can be considered as one of the most effective weapons in the fight against capital flight in the least corrupt African countries.

The paper recommends to the government of the least corrupt countries in Africa to create an enabling political and economic environment for investor’s attractiveness. This, in turn, will reduce the occurrence of capital flight and lead to the sustainable development.

The findings of this study suggest that the extent of corruption control by responsible institutions can be considered as one of the most effective weapons in the fight against capital flight in the least corrupt African countries. The paper recommends to the government of the least corrupt countries in Africa to create an enabling political and economic environment for investor’s attractiveness. This, in turn, will reduce the occurrence of capital flight and lead to the sustainable development.

This paper aims to assess the role of secrecy jurisdictions in providing supply-side stimulants for illicit financial flows from developing countries and how the tax havens structures shape the role of actors. Specifically focussing on decades of trade liberalisation and markets, and of increasingly rapid movement of people, capital and information across regions and around the globe, the paper draws on the political economy theory of globalisation to illuminate the connections between capital flight, money laundering and global offshore financial centres (OFCs).

The paper uses publicly available evidence to shed light on the role played by tax havens in facilitating money laundering, capital flight and corruption. The issues are illustrated with the aid of case studies.

The evidence shows that, in pursuit of organisational and personal interest, the tax havens create enabling structures that support illicit activities of the political and economic elites from developing countries. The paper further argues that the supply-side of corruption severely limits the possibilities of preventing corruption in developing countries.

The paper uses publicly available evidence to illuminate the role played by OFCs in facilitating elite corruption and money laundering practices.

It is impossible to quantify the volume of money laundered, but it has been estimated that money laundering may account for as much as 5% of the world economy.

The paper, therefore, suggests that unless this supply-side of corruption is tackled there is little prospect for an end to aid dependency and the creation of economically stable and democratic states in developing countries.

The paper examines predatory practices of the international financial industry in tax havens and OFCs in facilitating money laundering, corruption and capital flight and the challenges posed for the economic development of developing countries.

This paper aims to investigate the way in which Sri Lankan business associations contribute to addressing such issues and the motivation behind their contributions.

Data, in this study, came from publicly available sources (online news articles, newspaper articles, reports, etc.) and a series of unstructured elite interviews with leaders of Sri Lanka’s most prominent peak business associations.

Sri Lankan associations contribute to addressing problems associated with human capital flight because doing so, ultimately, benefits their members and secretariat organisations. Peak bodies make their contributions by easing the push factors that catalyse the outflow of skilled migrants from the island nation and helping to replenish skills in the country by engaging in initiatives aimed at training and developing workers, young people and entrepreneurs.

The behaviours of Sri Lanka’s business interest associations and the logics that drive their actions are similar to those of their counterparts in other countries (as per academic literature in the area), where association membership is not state-mandated. Rational actions of business associations have the potential to produce socially beneficial positive externalities (as in the present case issues around the brain drain).

Findings from this research can assist government bodies, non-government organisations and other civil society organisations develop a better collaborative relationship with the private sector in developing nations to tackle problems associated with human capital flight.

While there has been a lively debate, among philosophers and scholars of public policy, on how governments should help address issues associated with this phenomenon, very little attention has been given to the real and potential contributions of non-governmental, non-charity-based civil society groups such as unions and business chambers. This paper seeks to address this gap.

The purpose of this paper is to identify capital flows due to trade misinvoicing in 30 African nations.

Data from 30 African nations were examined for deviations from average import and export prices as an indicator of capital flows This paper uses US customs data to document the amount of capital flows which may be hidden in commodity trade. Deviations from average prices (price filter matrix) within these commodity classes are used to identify abnormal prices and to produce conservative estimates of the amount of capital movement from 30 countries in Africa to the USA.

The results of this study demonstrate that, between 2000 and 2005, capital outflows from all 58 countries in Africa to the USA grew by more than 50 percent, through both low‐priced exports and high‐priced imports.

A clear understanding as to the true purpose of the overall capital movement is not easy to determine from the data. Approximately half of the countries (16 out of 30) utilized low‐priced exports as a means to move more money into the USA, while the other half (14 out of 30) used high‐priced exports to move the most money.

When trade misinvoicing is used as a tool to move capital in and out of a country or continent in order to evade taxes and/or customs duties, avoiding quotas, smuggling, and laundering illegally obtained money, or as a means of capital flight, the economic development of the given country is severely hindered. This movement of capital may be due to tax evasion, duty reduction, money laundering, capital flight, or other reasons beyond the scope of this paper.

The technique of using a price filter matrix can be of value to researchers and governments to identify capital flows due to trade misinvoicing.