scholarly journals An empirical study of the relationships betwen corruption, capital leakages and country risk: part I

2006 ◽  
Vol 11 (20) ◽  
pp. 63-73
Author(s):  
Michel Bouchet ◽  
◽  
Bertrand Groslambert ◽  
Keyword(s):  
Developing Countries ◽  
Emerging Market ◽  
Private Investment ◽  
Development Aid ◽  
Capital Inflows ◽  
Capital Flight ◽  
International Capital Markets ◽  
Low Profile ◽  
Development Policies ◽  
National Environment

This paper investigates the relationship between corruption and capital flight in developing countries. Part I tackles the challenge of defining and measuring capital flight, as well as the various root causes of expatriated savings. Our research contributes to the corruption and capital market literature in several ways. First, the issue of capital flight has attracted less attention than that of external capital inflows in emerging market countries. In particular, capital flight has kept a low profile in academic circles until the late 1990s. In addition, research often looks at capital flight as a portfolio issue, and very few studies consider corruption as a «push factor». Second, our paper looks at why capital flight deserves renewed interest, as the globalization of financial markets broadens investment diversification opportunities for domestic residents. Increasingly, official agencies express concern regarding the recycling of generous development aid flows and heavy borrowing in the international capital markets outside the developing countries’ economies. In the aftermath of the G-7 1996 Cologne meeting, larger and broader debt relief, coupled with a strong emphasis on sustainable development policies, focuses on the urgency of capital flight repatriation. Third, we assume that corruption combines two kinds of centrifugal forces for capital leakages: corruption-driven money leaves a country because of fear of being caught by the tax and judiciary authorities; in addition, money leaves a country because of fear that a corrupt government will not provide a stable and conducive environment for safe savings and profitable investment. In Part II of our research, we test the assumption that the higher the level of corruption, the less conducive the national environment for private investment, and the greater the capital leakages.

Foreign Capital and Economic Growth

1988 ◽  
Vol 23 (3) ◽  
pp. 302-310
Author(s):  
Raj Aggarwal
Keyword(s):  
Economic Growth ◽  
Developing Countries ◽  
Global Change ◽  
Foreign Capital ◽  
Development Aid ◽  
Capital Inflows ◽  
Private Capital ◽  
Competitive Markets ◽  
Poor Countries ◽  
Foreign Capital Inflows

In the current environment of significant global change, how can declining levels of development aid and private capital inflows be best used to promote economic growth in the developing countries? This question is addressed here and traditional analysis of this topic is complemented by taking a perspective that focuses on the limitations of how development aid and foreign capital inflows are usually allocated. It is suggested here that poor countries can benefit from a greater use of competitive markets to allocate development aid and private capital inflows.

scholarly journals Foreign Capital and Economic Performance of Pakistan

2002 ◽  
Vol 7 (1) ◽  
pp. 1-32
Author(s):  
Minh Hang Le ◽  
Ali Ataullah
Keyword(s):  
Developing Countries ◽  
Human Capital ◽  
Foreign Aid ◽  
Economic Performance ◽  
Foreign Capital ◽  
Private Investment ◽  
Capital Inflows ◽  
Asian Countries ◽  
Foreign Private Investment ◽  
Foreign Capital Inflows

This paper reviews the trends of two types of foreign capital inflows, namely foreign aid and foreign private investment, to Pakistan. Like other developing countries, the volume of foreign aid to Pakistan has been decreasing. Meanwhile foreign private investment to Pakistan has increased, though not as sharply as that to other developing Asian countries. The study finds that the impacts of foreign capital, aid and private investment on the economic performance of Pakistan have been insignificant. This paper suggests that these consequences are due to the inadequate development of domestic institutional structure, human capital, and indigenous entrepreneurship.

scholarly journals An Islamic Perspective on Capital Markets and "Islamic" Securities in Malaysia

1995 ◽  
Vol 34 (4II) ◽  
pp. 865-878 ◽  
Author(s):  
Mohammad Anwar
Keyword(s):  
Developing Countries ◽  
Financial Markets ◽  
Production Efficiency ◽  
Capital Inflows ◽  
Capital Flight ◽  
Economic Welfare ◽  
Financial Contracts ◽  
Financial Systems ◽  
Productive Activities ◽  
Investment Opportunities

Financial systems channel funds in an economy from the surplus economic units lacking appropriate investment opportunities to the deficit economic units with such opportunities. The surplus units seeking returns by employing their funds in productive activities and the deficit units interested in exploiting their investment opportunities contact one another through a network of financial markets a~d institutions in the economy. The participants make financial contracts in ways which satisfy their requirements regarding liquidity, denomination, maturities, and risk diversification [Anwar (1987), pp. 296-297]. In this way, the financial markets contribute to a higher production, efficiency, and economic welfare of everyone in the society [Mishkin (1989), p. 45]. In recent years, the appetite for investment in the markets of developing countries has increased manyfold [Hussain (1994), p. 2]. A good many of such developing markets are in Islamic countries such as Egypt, Turkey, Bangladesh, Pakistan, and Malaysia. Well-developed Islamic financial markets would contribute towards economic development by attracting capital inflows and checking capital flight from the Islamic nations.

Trends in private investment in developing countries

1995 ◽  
Author(s):  
Frederick Z. Jaspersen ◽  
Anthony H. Aylward ◽  
Mariusz A. Sumlinski
Keyword(s):  
Developing Countries ◽  
Private Investment

Capital Flows to Developing Countries: Blessing or Curse? (Distinguished Lecture)

1998 ◽  
Vol 37 (4I) ◽  
pp. 125-151 ◽  
Author(s):  
Mohsin S. Khan
Keyword(s):  
Developing Countries ◽  
Capital Flows ◽  
Financial Integration ◽  
Foreign Capital ◽  
Foreign Debt ◽  
Capital Inflows ◽  
Private Capital ◽  
Policy Responses ◽  
Private Capital Flows ◽  
Significant Phenomenon

The surge of private capital flows to developing countries that occurred in the 1990s has been the most significant phenomenon of the decade for these countries. By the middle of the decade many developing countries in Asia and Latin America were awash with private foreign capital. In contrast to earlier periods when the scarcity of foreign capital dominated economic policy-making in these countries, the issue now for governments was how to manage the largescale capital inflows to generate higher rates ofinvestrnent and growth. While a number of developing countries were able to benefit substantially from the private foreign financing that globalisation made available to them, it also became apparent that capital inflows were not a complete blessing and could even turn out to be a curse. Indeed, in some countries capital inflows led to rapid monetary expansion, inflationary pressures, real exchange rate appreciation, fmancial sector difficulties, widening current account deficits, and a rapid build-up of foreign debt. In addition, as the experience of Mexico in 1994 and the Asian crisis of 1997-98 demonstrated, financial integration and globalisation can cut both ways. Private capital flows are volatile and eventually there can be a large reversal of capital because of changes in expected asset returns, investor herding behaviour, and contagion effects. Such reversals can lead to recessions and serious problems for financial systems. This paper examines the characteristics, causes and consequences of capital flows to developing countries in the 1990s. It also highlights the appropriate policy responses for governments facing such inflows, specifically to prevent overheating of the economy, and to limit the vulnerability to reversals of capital flows.

scholarly journals Creating Destinations for a Better Tomorrow: UN Development Aid for Cultural Tourism in the 1960s

2021 ◽  
pp. 002200942097476
Author(s):  
Marie Huber
Keyword(s):  
Developing Countries ◽  
Development Aid ◽  
Employment Sector ◽  
Development Decade ◽  
Colonial Legacies ◽  
The Subject ◽  
1960S And 1970S ◽  
The 1960S ◽  
International Experts

Tourism is today considered as a crucial employment sector in many developing countries. In the growing field of historical tourism research, however, the relationships between tourism and development, and the role of international organizations, above all the UN, have been given little attention to date. My paper will illuminate how during the 1960s tourism first became the subject of UN policies and a praised solution for developing countries. Examples from expert consultancy missions in developing countries such as Ethiopia, India and Nepal will be contextualized within the more general debates and programme activities for heritage conservation and also the first UN development decade. Drawing on sources from the archives of UNESCO, as well as tourism promotion material, it will be possible to understand how tourism sectors in many so-called developing countries were shaped considerably by this international cooperation. Like in other areas of development aid, activities in tourism were grounded in scientific studies and based on statistical data and analysis by international experts. Examining this knowledge production is a telling exercise in understanding development histories colonial legacies under the umbrella of the UN during the 1960s and 1970s.

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