scholarly journals Private Capital Outflow from Pakistan

1993 ◽  
Vol 32 (4II) ◽  
pp. 619-627 ◽  
Author(s):  
Khwaja Sarmad
Keyword(s):  
Foreign Exchange ◽  
Capital Controls ◽  
Balance Of Payments ◽  
Capital Flight ◽  
Private Capital ◽  
Institutional Agents ◽  
Potential Growth ◽  
Tax Base ◽  
Capital Outflow ◽  
High Degree

An important and often ignored aspect of Pakistan's economy during the Seventies and the Eighties has been the high degree of mobility of domestic private capital despite the prevalence of explicit capital controls. In a foreign exchange constrained situation the capital outflow arising frOm increasing private claims abroad can have macroeconomic consequences leading to welfare loss through the reduction of domestic real investment, foreign exchange availability and a shrinking tax base, which result in the loss of potential growth. It is important to have some estimate of 'capital flight' in order to uncover the 'concealed' transactions in the balance of payments and to reveal the actual behaviour of institutional agents, since a part of the balance of payments difficulties are due to the deinand for foreign assets by the private sector channelled through unrecorded transactions. Because of their hidden nature these transactions have remained unrecorded in the official economic accounts and are consequently neglected. Thus, despite the importance of this phenomenon, often identified as 'capital flight', there have been few attempts to investigate the issue in Pakistan [with the exception of Khan and Haque (1987)]. The main reason for this being the difficulty in identifying 'capital flight' within the recorded balance of payments.

Foreign Direct Investment

2017 ◽  
Author(s):  
Yilmaz Akyüz
Keyword(s):  
Foreign Direct Investment ◽  
Mergers And Acquisitions ◽  
Financial Markets ◽  
Foreign Exchange ◽  
Direct Investment ◽  
Balance Of Payments ◽  
Productive Capacity ◽  
Cross Border ◽  
Direct Contribution ◽  
High Profit

Recent years have also seen increased openness of EDEs to foreign direct investment (FDI) in search for faster growth and greater stability. However, FDI is one of the most ambiguous and least understood concepts in international economics. Common debate is confounded by several myths regarding its nature and impact. It is often portrayed as a stable, cross-border flow of capital that adds to productive capacity and meets foreign exchange shortfalls. However, the reality is far more complex. FDI does not always involve inflows of financial or real capital. Greenfield investment, unlike mergers and acquisitions, makes a direct contribution to productive capacity, but can crowd out domestic investors. FDI can induce significant instability in currency and financial markets. Its immediate contribution to balance-of-payments may be positive, but its longer-term impact is often negative because of high-profit remittances and import contents.

MÜASİR ŞƏRAİTDƏ AZƏRBAYCANIN VALYUTA SİYASƏTİNİN TƏKMİLLƏŞDİRİLMƏSİ VƏZİFƏLƏRİ VƏ İSTİQAMƏTLƏRİ

2020 ◽  
Vol 54 (05) ◽  
pp. 122-125
Author(s):  
Kamil Sayavush Demirli ◽  
Keyword(s):  
Monetary Policy ◽  
Key Words ◽  
Foreign Exchange ◽  
Oil And Gas ◽  
Balance Of Payments ◽  
International Capital ◽  
Foreign Exchange Reserves ◽  
Commodity Trade ◽  
Transit Service ◽  
Gas Balance

Key words: monetary policy, commodity trade foreign exchange reserves, balance of payments, oil and gas, balance, transportation, transit service, international, capital, perspective

scholarly journals PLASTIC CARDS AS THE MAIN SECTOR OF CASHLESS PAYMENTS

2018 ◽  
pp. 76-79 ◽  
Author(s):  
S. O. Kushu ◽  
Y. A. Sobka
Keyword(s):  
Economic Development ◽  
Banking Sector ◽  
Economic Activities ◽  
Tax Base ◽  
Financial Condition ◽  
Motivational Aspect ◽  
Calculation Methodology ◽  
Single Strategy ◽  
High Degree ◽  
The Impact

The article discusses the impact of plastic cards on minimizing the risks of the organization. Non-cash payments - is an integral part of the management of financial and economic activities of the banking sector within the framework of a single strategy of economic development, which is a process of systematic use of the optimal legal methods and methods to establish the desired future financial condition of the object in terms of limited resources and the possibility of their alternative use. The process of using plastic cards should be considered in a number of ways. The organizational aspect assesses the degree of formalization and regulation of the use of cashless payments. It is clear that the higher the degree of regulation of procedures, the higher the predictability and manageability of the process of cashless payments. Coordination is the degree of coordination among the participants. It is the result of a high degree of regulation of the process or effective operational work of the Department of non-cash payments. The methodology reflects the compliance of plastic cards calculation methodology adopted by the company, its production characteristics and financial and economic structure. The value of the motivational aspect of non-cash payments is that it makes it possible to stimulate the results of the work of the head, or the entire Department of non-cash payments. Stimulation is made by means of inclusion in the budget of division of the bonus Fund which can be used for payment of awards to employees of division and its head. The need to calculate Bank cards is inherent in the legislation itself, which provides for certain regimes for different situations, allows different methods for calculating the tax base and offers various benefits if they act in the desired directions to the authorities. In addition, the process of calculating plastic cards is due to the interest of the state in providing a number of advantages in order to stimulate any sphere of production, category, regulation of socio-economic development.

scholarly journals Understanding the Interdependency between the Nifty 50 Future Index and the Advanced Future Stock Market through Econometrics

2019 ◽  
Vol 8 (4) ◽  
pp. 3660-3664
Keyword(s):  
Hong Kong ◽  
Stock Market ◽  
Granger Causality ◽  
Foreign Exchange ◽  
Financial Market ◽  
Stock Prices ◽  
Economic Condition ◽  
The Future ◽  
Bidirectional Movement ◽  
High Degree

In recent times the stock market is accepted as a tool to measure the economic condition of a nation. It is found that the Indian financial market as highly volatile due to the lower value of rupees in foreign exchange with the dollar. This motivated the researchers to measure the interdependencies of [Nifty 50 future (India), Nikkei 225(Japan), NASDAQ 100 Futures (USA), Dow Jones 30 (USA), SSEC (China), Hang Seng Future (Hong Kong), and FTSE 100 (London)]. The analysis covers monthly stock prices for a period of 10years from April 2008 to March 2018. The measurement of interdependencies is studied through granger causality and correlation after the confirmation of the non-normality of data and stationary of data. The result shows a high degree of correlation between NASDAQ and Dow Jones shows 98.76% followed by 96.89% between Nifty 50 future and NASDAQ. The co-movement result of Nifty 50 future through granger causality states Nifty 50 future can explain the future stock market of Nikkei (Japan) and SSEC (China) and the Hang Seng future (Hong Kong) has a bidirectional movement with Nifty 50 futures. The study is useful for the investors to identify the interdependencies of the indices and understand the movement in a significant manner.

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.

scholarly journals Effect of terrorism activities on capital flight in the Middle East

2020 ◽  
Vol 157 ◽  
pp. 03017
Author(s):  
Anahita Seifi ◽  
Samira Motaghi ◽  
Salah Ebrahim ◽  
Mojtaba Soltani Ahmadi
Keyword(s):  
Middle East ◽  
Negative Impact ◽  
Positive Impact ◽  
Trade Openness ◽  
Economic Consequences ◽  
Capital Flight ◽  
Spatial Effects ◽  
Negative Effects ◽  
Capital Outflow ◽  
Middle East Countries

Behavioral economics has proven that negative emotions can influence investors’ decisions. One of the factors that have a negative impact on investors’ sentiment is terrorism as the new face of violence with economic consequences. The link between terrorism and capital outflow is a theoretical framework that explains how violence affects capital flight of a country. With this in mind, the purpose of this study is to investigate the effect of terrorist activities on capital flight in the Middle East countries during the period 2000-2016 using the Spatial Econometric Panel Data Approach. The results of this study show that terrorism and its spatial effects have a significant and positive impact on capital flight in the Middle East countries. Also, gross domestic production (GDP) and trade openness have negative effects on capital outflow. This study has important implications for policymakers in countries facing terrorist activity and investors’ trust building.

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