Authors:
Gioia Arnone
Addresses:
Department of Private and Economic Law, Vrije Universiteit Brussel, Ixelles, Belgium.
Abstract:
The purpose of this paper is to investigate the impact of corruption on capital flight. This paper uses panel data from 41 developed and developing countries from 2010 to 2020 to investigate the paper. This paper models capital flight by employing the residual-based approach to measure capital flight. The generalized Method of Moment estimation technique is used as the base estimation. Corruption, the variable of interest, retains its expected positive sign and is statistically significant across all estimations. Even when other equally important variables, such as lack of rule of law, regime durability, and executive constraint decision rules, are considered, the relationship remains very strong. The findings also show that the lack of rule of law, regime durability, and executive constraint decision rules are statistically significant across all estimations after controlling for the regular determinants of the capital flight. The majority of the literature is divided into two types: country-specific and region-specific studies. Previous studies conducted research only on a few developing countries. This paper covers developing and developed countries across all world regions for a panel of 41 countries for 2010-2020.
Keywords: Capital Flight; Corruption and Panel Data; Residual Capital Flight; Non-Residents and Economic Crisis; Income Distribution; Capital Controls; Financial Assets; Economic Growth; Currency Crisis.
Received: 27/06/2024, Revised: 01/09/2024, Accepted: 16/10/2024, Published: 03/12/2024
AVE Trends in Intelligent Technoprise Letters, 2024 Vol. 1 No. 4 , Pages: 212-225