Development aid and illicit capital flight: Evidence from Nepal

DC FieldValueLanguage
dc.contributor.authorSteinkamp, Sven
dc.contributor.authorWestermann, Frank
dc.date.accessioned2021-12-23T15:59:39Z-
dc.date.available2021-12-23T15:59:39Z-
dc.identifier.issn03785920
dc.identifier.urihttps://osnascholar.ub.uni-osnabrueck.de/handle/unios/4068-
dc.description.abstractWhile illicit capital flight is a major concern of policymakers in developing countries, there is only little research on the possible link between capital flight and development aid. In this paper, we address the issue for Nepal, a stereotypical financially closed developing economy that is highly dependent on resources from abroad. Distinguishing features of our approach are the use of a narrowly defined proxy of capital flight, based on trade cost-adjusted mirror trade statistics, and the focus on the foreign-exchange cash component of development aid. We document a robust partial correlation between aid and outward capital flight that is economically and statistically significant. Interestingly, this positive correlation is not observable for remittances, an alternative form of foreign-exchange inflows where the capital flight motivation is absent. Furthermore, it is visible in the FX cash component but not in broader aid definitions that include in-kind transfers, or in multilateral and IMF loans. Finally, when comparing the subcomponents of export underinvoicing and import overinvoicing, only the latter is driving our results.
dc.language.isoen
dc.publisherWILEY
dc.relation.ispartofWORLD ECONOMY
dc.subjectBusiness & Economics
dc.subjectBusiness, Finance
dc.subjectcapital flight
dc.subjectCHINA
dc.subjectCOSTS
dc.subjectDETERMINANTS
dc.subjectdevelopment aid
dc.subjectDONOR
dc.subjectEconomics
dc.subjectEVASION
dc.subjectGROWTH
dc.subjectInternational Relations
dc.subjectPANEL
dc.subjectREMITTANCES
dc.subjectTRADE
dc.subjecttrade misinvoicing
dc.subjectVARIABLES
dc.titleDevelopment aid and illicit capital flight: Evidence from Nepal
dc.typejournal article
dc.identifier.doi10.1111/twec.13208
dc.identifier.isiISI:000711601700001
dc.contributor.orcid0000-0002-1426-2736
dc.identifier.eissn14679701
dc.publisher.place111 RIVER ST, HOBOKEN 07030-5774, NJ USA
dcterms.isPartOf.abbreviationWorld Econ.
dcterms.oaStatusGreen Submitted, hybrid
crisitem.author.deptFB 09 - Wirtschaftswissenschaften-
crisitem.author.deptidfb09-
crisitem.author.parentorgUniversität Osnabrück-
crisitem.author.netidWeFr948-
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