Publication

This paper explores access to finance by developing countries and the concerns surrounding capital flight. The author illustrates that all resident capital flows cannot be identified as capital flight and that the response of the international community based on observations of resident capital flows can be overstated. He uses statistical analysis to distinguish normal capital flows and capital flight. The paper concludes that for many countries, two-way flows of capital are a likely explanation for a size-able percentage of resident capital outflows because the same common factors explain both inflows and outflows of capital.