Copper will bolster economic improvements in Peru

2021 ◽  
Keyword(s):  
Capital Flight ◽  
Copper Industry ◽  
Tax System ◽  
Financial Reforms ◽  
Content Type

Significance The booming copper industry will stimulate production overall while helping to bolster export earnings and treasury receipts. The Castillo administration has produced proposals for tax and other financial reforms which, if approved by Congress, will raise Peru’s low tax take and make the tax system somewhat more progressive. Impacts Peru will see inflation rise this year and next. Reserves will be sufficient to allay problems arising from capital flight. Treasury income from the proposed reforms will yield less than hoped for.

scholarly journals Impact of Capital Flight on Tax Revenue in Nigeria: A Co-integration Approach

2020 ◽  
Vol 11 (5) ◽  
pp. 141
Author(s):  
Damilola Felix Eluyela ◽  
Inemesit Bassey ◽  
Olufemi Adebayo Oladipo ◽  
Adekunle Emmanuel Adegboyegun ◽  
Abimbola Ademola ◽  
...  
Keyword(s):  
Secondary Data ◽  
Least Square ◽  
Capital Flight ◽  
Tax Revenue ◽  
National Bureau ◽  
Tax System ◽  
Positive Direction ◽  
Integration Test ◽  
Inland Revenue ◽  
The Impact

This study presents an empirical analysis of the impact of capital flight on tax revenue in Nigeria. We made use of secondary data collected from the Central Bank of Nigeria Statistical Bulletin of various issues, Federal Inland Revenue Services and National Bureau of Statistics. The empirical measurement covers the sample period between 1980 and 2015. An Ordinary Least Square, Augmented Dickey-Fuller unit root test, Error Correction Mechanism and Co-integration test was adopted in the study. The results revealed that the Gross Domestic Product has a significant effect in the positive direction, while capital flight and inflation rate have a significant effect in the negative direction. The study recommended that the Federal Inland Revenue System, the department saddled with the responsibility of tax collection, should review the tax system and policies with the aim of plugging loopholes in the existing tax system thereby preventing organizations from evading and avoiding taxes.

Dynamics of capital controls: panel evidence from Asia

2020 ◽  
Vol 47 (2) ◽  
pp. 242-263
Author(s):  
Biplab Kumar Guru ◽  
Inder Sekhar Yadav
Keyword(s):  
Capital Flows ◽  
Capital Controls ◽  
Substitution Effect ◽  
Capital Flight ◽  
Empirical Examination ◽  
Content Type ◽  
Asian Economies ◽  
Asset Classes ◽  
The Impact ◽  
Gross Capital Flows

PurposeThis study empirically examines the effect of capital controls on the volume and composition of capital flows at aggregated as well as at disaggregated level by different asset classes such as debt, FDI, equity, and derivatives.Design/methodology/approachSeveral dynamic panel SYS-GMM models are employed on two sets of unique data on cross-border capital flows and capital control index along with control variables at aggregated and disaggregated level by different asset classes during 1995–2015 for a sample of 31 Asian economies.FindingsEconometric findings suggest that higher capital controls effectively reduce gross capital flows. The reduction in gross capital flows is largely found to be on account of effectiveness of controls on equity flows. However, the impact of controls on overall debt and derivative flows is found to be insignificant. Further, it was found that an increase in direct capital controls disaggregated by inflow and outflow categories significantly reduced the inflow of debt and equity + FDI flows and outflow of equity + FDI and derivative flows. Finally, the study did not find any substitution effect (due to indirect controls) and net effect on capital flows.Practical implicationsResults of such empirical examination may enable governments in respective countries to pursue prudent and rational capital controls as a shield against capital flight and shock transmission.Social implicationsPreventing capital flight through effective controls has macroeconomic benefits such as maintaining stability in income, growth, interest rate, exchange rate, and employment levels for the society.Originality/valueThe primary contribution of the study is the analysis of effectiveness of capital controls disaggregated by different asset categories such as debt, equity, FDI, and derivatives using two unique recent data sets for a large sample of Asian economies.

Capital flight and extent of corruption control in the least corrupt African countries

2019 ◽  
Vol 13 (3) ◽  
pp. 469-483 ◽  
Author(s):  
Thales Pacific Yapatake Kossele ◽  
Magalie Gabriella Ngaba Mbai-Akem
Keyword(s):  
Sustainable Development ◽  
Fixed Effects ◽  
Negative Impact ◽  
Economic Environment ◽  
Capital Flight ◽  
African Countries ◽  
Content Type ◽  
The Sustainable Development ◽  
The Government ◽  
Practical Implications

Purpose The purpose of this paper is to investigate the effect of corruption control on capital flight in the least corrupt African countries. Design/methodology/approach Using panel data covering the period of 1996-2010. Findings 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. Practical implications 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. Social implications 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. Originality/value 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.

Dealing with brain drain: the contributions of Sri Lanka’s peak business interest associations

2019 ◽  
Vol 10 (3) ◽  
pp. 239-256
Author(s):  
Kevin You
Keyword(s):  
Human Capital ◽  
Civil Society ◽  
Brain Drain ◽  
Online News ◽  
Capital Flight ◽  
Sri Lankan ◽  
Business Associations ◽  
Content Type ◽  
Business Interest ◽  
Human Capital Flight

Purpose This paper aims to investigate the way in which Sri Lankan business associations contribute to addressing such issues and the motivation behind their contributions. Design/methodology/approach 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. Findings 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. Research limitations/implications 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). Social implications 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. Originality/value 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.

Puerto Rican fiscal crunch is approaching Congress

2015 ◽  
Keyword(s):  
Puerto Rico ◽  
Puerto Rican ◽  
Democratic Party ◽  
Corporate Tax ◽  
Tax System ◽  
Content Type ◽  
Working Age ◽  
Working Age Population

Significance Puerto Rico has suffered from an inability to service its debts, as its economy has been in or near recession since 2005. Its population has declined -- especially the working age population -- as residents, who are US citizens, have moved to the mainland to look for work. The governor has proposed an overhaul of the tax system in an attempt to raise revenues. Impacts Tax breaks for US companies operating in Puerto Rico may be part of a corporate tax overhaul. There is little prospect for such legislation this Congress, but a fiscal crunch could spur a separate bill. The Democratic party would probably split, as opposition to corporate tax breaks would clash with its Hispanic base.

Overreliance on IMF forecasts for India is ill-advised

2015 ◽  
Keyword(s):  
Financial Markets ◽  
Credit Ratings ◽  
The State ◽  
Capital Flight ◽  
Gdp Growth ◽  
Content Type ◽  
Sovereign Credit ◽  
Sovereign Credit Ratings ◽  
The Imf ◽  
Growth Forecasts

Subject IMF projections on India's GDP growth between 2006 and 2013. Significance In October 2014, the IMF forecast India's GDP growth at 5.6% and 6.4% in 2014 and 2015 respectively, compared with 5.0% in 2013. Since such growth forecasts increasingly dominate discussions on the state of an economy and influence financial markets, serious questions arise about their accuracy -- and therefore their utility. Impacts Should IMF expectations of India's revival be frustrated, the Fund will call for further reform. In that case, IMF projections will be revised down, exacerbating capital flight risk. IMF projections carry more risks than benefits for countries, especially since they shape sovereign credit ratings.

Gulf taxation plans will not plug fiscal deficits

2016 ◽  
Keyword(s):  
Local Governments ◽  
Capital Flight ◽  
Political Resistance ◽  
Content Type ◽  
Government Deficits ◽  
Oil Revenue ◽  
Fiscal Reforms ◽  
Open Debate ◽  
State Employment ◽  
General Service

Subject Taxation in the Gulf. Significance The emergence of government deficits in the Gulf Cooperation Council (GCC) states in 2015 has led to a surprisingly open debate about fiscal reforms, including subsidy reductions and the introduction of new taxes. While the new willingness to overcome political resistance is positive, spending needs of local governments are huge, and there are structural limits to raising local income without hurting Gulf economies and triggering capital flight. Impacts Unless ever-increasing state employment is rolled back, taxes will only postpone, not prevent fiscal crisis and currency devaluation. New revenue raising measures will exhaust some of the political goodwill that GCC leaders still enjoy among citizens. Saudi Arabia's target of achieving 530 billion riyals (141 billion dollars) in non-oil revenue by 2020 is unrealistic. Subsidy reforms, VAT and general service fees may well be watered down, while new taxes and fees on business are likely to go ahead. Too much taxation on business would encourage capital flight.

Beijing reveals anxieties over capital flight

2016 ◽  
Keyword(s):  
Capital Flight ◽  
Content Type

Headline CHINA: Beijing reveals anxieties over capital flight

Russian capital flight trend looks relentless

2019 ◽  
Keyword(s):  
Capital Flight ◽  
Content Type

Headline RUSSIA: Capital flight trend looks relentless

Efficiency of banks in Southeast Asia: Indonesia, Malaysia, Philippines and Thailand

2017 ◽  
Vol 44 (12) ◽  
pp. 2302-2312 ◽  
Author(s):  
Shazida Jan Mohd Khan ◽  
Shamzaeffa Samsudin ◽  
Rabiul Islam
Keyword(s):  
Data Envelopment Analysis ◽  
Southeast Asia ◽  
Design Methodology ◽  
The Philippines ◽  
Data Envelopment ◽  
Bank Efficiency ◽  
Financial Reforms ◽  
Content Type ◽  
Cross Country

Purpose The purpose of this paper is to use the concept of meta-frontiers data envelopment analysis (DEA) to compare the technical efficiencies of banks in selected Southeast Asia countries in the periods of 1998-2012. Design/methodology/approach The authors evaluate bank efficiency in Indonesia, Malaysia, Thailand and the Philippines by means of DEA, and the authors employ a meta-frontiers approach to calculate efficiency scores in a cross-country setting. Findings The analysis shows that even there are some similarities in the process of financial reforms undertaken in the selected countries, the observed efficiency levels of banks vary substantially across the market. Originality/value It is crucial to take into consideration of different technologies in explaining the efficiency differences.

Sign in / Sign up

Export Citation Format

Share Document