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Resident Capital Outflows: Capital Flight or Normal Flows? A Statistical Interpretation

Working papers

This paper examines the relationships among all types of capital flows and in particular that between resident capital flows (RKF) and other components. The relationship between resident capital flows was examined in earlier studies with two specific questions in mind: Does external debt finance capital flight? Does FDI finance capital flight? Another category is now added: Does resident capital outflow finance an inflow? Thus resident capital flows can be one side of a two-way flow response to asymmetric risk.

Benu Schneider