Capital flight

A partir de 2011, Argentina implementó una serie de controles cambiarios que llegaron a incluir la prohibición de adquisición de moneda extranjera para fines no productivos. En diciembre de 2015, tras el cambio de gobierno, se eliminaron todas las regulaciones cambiarias hasta niveles previos a la crisis de 2001-2002. La implementación de estas reformas estuvo basada en la visión mainstream, con la expectativa de que se revertiría la salida de fondos al exterior. Sin embargo, tras el levantamiento de los controles, según la información del balance cambiario del Banco Central de la República Argentina (BCRA) sobre la Formación de Activos Externos (FAE) se observa que, para el primer año, el monto fugado al exterior se duplicó. El financiamiento de la mayor salida de divisas fue posible mediante el incremento del endeudamiento externo.

Irrespective of development status, capital flight poses a great danger to national economies as it symbolises a
share of foregone investment and therefore set a foundation to other economic challenges. By depriving the
country of the extremelydesired financial resources, economic mismanagement aggravated by inappropriate
policy measures have triggered the capital flight in Nigeria. In view of that, this study examines the impact of
capital flight on economic growth in Nigeria using annual time series data spanning 1980 to 2019. Data are
collected throughdifferent sources and are analysed using the Autoregressive Distributed Lag(ARDL) model.
Findings indicate the presence of a long-run and short-run relationship between real GDP, capital flight,
foreign reserve, external debt, and domestic investment in Nigeria. In addition, the impact of various
coefficients shows that capital flight has a negative and significant impact, while foreign reserve, external debt,
and domestic investment show a positive impact on economic growth in the long-run period. As a result,
government should design a feasible economic reform measures to curtail the rising wave of capital flight.
These economic reforms must be targeted toward sound macroeconomic stability, ensure transparency and
accountability in the management of public resources as well as creating a favourable atmosphere for increase domestic production.
Keywords: capital flight, economic growth, foreign reserve, external debt, domesticinvestment,ARDL model,
Nigeria.

CINCO ACTORES PROTAGONIZAN HOY EL MUNDO
OFFSHORE: LAS “GUARIDAS FISCALES” (PIADOSAMENTE
LLAMADAS “PARAÍSOS” POR LOS MEDIOS MASIVOS);
LA BANCA GLOBAL; LAS RESTANTES CORPORACIONES
MULTINACIONALES; LAS GRANDES CONSULTORAS
GLOBALES EN AUDITORÍA E IMPUESTOS; Y LOS ESTUDIOS
LEGALES ESPECIALIZADOS. SON LOS FACILITADORES
(ENABLERS) DE LA FUGA DE CAPITALES, LA EVASIÓN
TRIBUTARIA Y EL LAVADO DE ACTIVOS POR PARTE DE LAS
GRANDES CORPORACIONES Y LOS “RICOS GLOBALES”.
LEJOS DE CONSTITUIR UNA EXCEPCIÓN, LA ARGENTINA
SE MANTIENE EN LA “VANGUARDIA” –DICHO ESTO CON
IRONÍA– DE ESTOS “DESARROLLOS”. EL RECIENTE
DESEMPEÑO DEL PAÍS A PROPÓSITO DEL DESAFÍO QUE
PLANTEAN LAS “GUARIDAS FISCALES” AL EJERCICIO DE
SU CADA VEZ MÁS MENGUADA AUTORIDAD SOBERANA
RESULTA DIGNO DE ESPECIAL ANÁLISIS.

This article views Illicit Financial Flows (IFFs) as any illegal and corrupt
practice to acquire money without the due process that is in line with
international financial and trade regulatory frameworks. Based on this
working definition, the article explores IFFs in the mining sectors in four
countries (the Republics of Botswana, Namibia, South Africa and Zimbabwe) with a specific focus on the socio-economic implications for communities in the mining or former mining areas. Measurement issues are also attempted. Indeed, IFFs have severe implications for the communities (as for countries). Although the results are mixed, regarding the quantification of IFFs in the mining sector, it is clear that IFFs have major negative effects on welfare and political stability. Estimates show high levels of IFFs through trade misinvoicing for the mining sector in all the four countries.

Esta investigación de Andrés Gómez, fruto de un trabajo integrador de la especialización en Criminología, caracteriza desde una mirada jurídica e histórica la trama de la fuga de capitales, los delitos de cuello blanco y la corrupción, y pone bajo la lupa su sistematicidad en la última dictadura. Durante esos años de endeudamiento externo alentado por prestamistas internacionales y de valorización financiera en detrimento de actividades productivas, aquellos sofisticados mecanismos económicos constituyeron una verdadera política de Estado. Así, miembros encumbrados de la elite militar y empresarios que disfrutaban de rentas extraordinarias drenaron del país hacia guaridas fiscales más de 37 mil millones de dólares. El autor plantea que las consecuencias económicas y sociales de este fenómeno no han sido lo suficientemente puestas en tela de juicio, y que el proceso de Memoria, Verdad y Justicia por los crímenes de lesa humanidad argentinos no estará completo mientras esta arista permanezca impune

Economic globalization has contributed immensely to economic growth and production efficiencies across the globe. However, the consequences depend on the nature and the manner in which different nations are integrated into the international market. There are many components of globalization that affect economic growth. However, this paper examined the impact of the major components of economic globalization: FDI, that is International Trade, International Portfolio Investment, International Technological Transfer and International Remittance on GDP growth in Kenya. The study’s objective was to assess the macroeconomic impact of economic globalization on the Kenyan economy. To achieve the desired objective, the study employed ARDL econometric estimation techniques using annualised secondary time series data from UNCTAD, and World Bank in Kenya from 1980-2017. The results indicate that Foreign Direct Investment, Portfolio Investment and International technological transfer have a positive and significant impact on economic growth in Kenya. However, Foreign Trade and International remittances were found to have a negative and impact on economic growth. In order to better harness the positive impacts of economic globalization, policies that boost International Trade, Foreign Direct Investment, Portfolio Investment, International Technological Transfer and International Remittances are encouraged in order to facilitate economic growth in Kenya.

The old flight instruments made by right brothers have only limited flight instruments that to only mechanical devices such as airspeed indicators, oil pressure gauge, fuel tank and single engine. The trend towards modern aircrafts have advanced features such as mentioned in this article all electronic instruments displays radar such as altimeter, attitude indicator, multiple engines displays of all parameters of aircraft. Indexing terms: fight instruments; pfd airspeed indicator; attitude indicator etc; INTRODUCTION Primary Flight Display (PFD) A PFD presents information about primary flight instruments, navigation instruments, and the status of the flight in one integrated display. Some systems include power plant information and other systems information in the same display. A typical primary flight display is shown in Figure 2-1. Primary Flight Instruments Flight instrument presentations on a PFD differ from conventional instrumentation not only in format, but sometimes in location as well. For example, the attitude indicator on the PFD in Figure 2-1 is larger than conventional round-dial presentations of an artificial horizon. Airspeed and altitude indications are presented on vertical tape displays that appear on the left and right sides of the primary flight display. The vertical speed indicator is depicted using conventional analog presentation. Turn coordination is shown using a segmented triangle near the top of the attitude indicator. The rate-of-turn indicator appears as a curved line display at the top of the heading/navigation instrument in the lower half of the PFD. Cross-Checking the Primary Flight Instruments The PFD is not intended to change the fundamental way in which you scan your instruments during attitude instrument flying. The PFD supports the same familiar control and performance, or primary and supporting methods you use with conventional flight instruments. For example, when using the primary and supporting method to maintain level flight, the altimeter is still the primary instrument for pitch, while the attitude indicator is a direct indicator and the vertical speed indicator provides supporting information. However, you need to train your eyes to find and interpret these instruments in their new formats and locations. Common Errors: Altitude Excursions and Fixation Pilots experienced in the use of conventional flight instruments tend to deviate from assigned altitudes during their initial experience with the PFD, while they adjust to the tape display presentation of altitude information. Another common error is the tendency to fixate and correct deviations as small as one to two feet at the expense of significant deviations on other parameters.

Los precios de transferencia suelen ser definidos como “los precios a los que se realizan transacciones entre entidades vinculadas”; aunque, esta definición implica reconocer la existencia de un “precio”, de un contrato entre partes jurídicamente independiente, algo que no se cumple hacia el interior de un grupo económico. Su importancia fiscal radica en que la valoración de estas operaciones tiene un impacto en los balances y estados de resultados de cada entidad del grupo, y por lo tanto los grupos económicos, con el objetivo de incrementar sus ganancias globales, utilizan los mecanismos de precios de transferencia para aumentar los costos en las jurisdicciones de alta tributación y transferir las utilidades a las casas matrices, muchas veces por vía de “guaridas fiscales”, que no solo son importantes por sus bajas o nulas tasas imponibles, sino también por el elevado nivel de “secretismo” con el que protegen a sus inversores. Estos mecanismos distorsionan completamente las motivaciones económicas, al punto que termina remunerándose, como consecuencia de las legislaciones vigentes en todo el mundo, no tanto a quién produce cada cosa, o al valor agregado por cada entidad del grupo –algo difícil de calcular cuando los precios han sufrido distorsiones-, sino a la empresa del grupo que registra a su nombre los activos, funciones y riesgos.

En criminología, el concepto “delincuencia empresarial” define los delitos cometidos por una empresa o persona, que actúa en nombre de una corporación u otra entidad comercial. En la historia del capitalismo reciente, y más profundamente desde la década de 1970, los crímenes de las personas jurídicas han perdido lugar en la escena pública y la cobertura mediática, quedando bajo un velo de desconocimiento los costos sociales de los delitos corporativos. Este tipo de delitos generan un impacto de gran escala sobre el conjunto social, en cualquier economía actual. Sin embargo los abordajes teóricos y las puniciones existentes en cada país o incluso en cada región están altamente vinculados y determinados por un conjunto de limitantes estructurales de la economía en cuestión. Este trabajo propone diferenciar el impacto y el consecuente tratamiento que el delito económico tiene, en relación al nivel de desarrollo y autonomía existente. A tal fin se analizarán tres casos de características disímiles. En primer lugar la Unión Europea, haciendo especial foco en la imposibilidad que tienen sus miembros de controlar su política monetaria; en segundo lugar los Estados Unidos, desde su rol hegemónico en la economía global; y por último las economías en desarrollo, frente a su estructural carencia de financiamiento. Para exponer los resultados se utilizarán además, como caso testigo, las acciones del Banco HSBC, como criminal corporativo de escala global constituyéndose como facilitador de la evasión fiscal y la fuga de capitales.

Mr Modi had campaigned on a promise that he would bring black money home from abroad and give each poor Indian Rs 15 lakhs (https://www.youtube.com/watch?v=i1Lw53W_AkM). And others close to him claimed that all Indian economic development could be financed by Sonia Gandhi's supposed overseas fortune (http://timesofindia.indiatimes.com/india/Swamy/articleshow/49842408.cms). Taking the World Bank's rosy projection of how Indian poverty has declined under liberalisation (http://povertydata.worldbank.org/poverty/country/IND), that would mean giving Rs 417 trillion to 278 million people. That promise was as absurd as the claim of Mrs Gandhi's wealth. Since the Prime Minister and his advisors are intelligent people, they must not have meant a word they uttered. Instead his Government has chosen to inflict untold misery on the poor by withdrawing from circulation the denominations in which they hold most of their wealth.

The challenge posed by capital flight have always engaged attentions of economists, policymakers and successive governments in Nigeria because it has denied the country of enormous resources which would have been used to accelerate the rate of economic growth and improve on the welfare of the citizens. It is in the light of this that this study empirically examines the effect of capital flight on selected macroeconomic variables in Nigeria using a cointegration and causality testing approach. Employing annual time series data sourced from the Central Bank of Nigeria statistical Bulletin (2015) and World Bank Development Indicators database (2015), variables employed in the model (capital flight, gross domestic product, investment and unemployment) were stationary as well as possessing longrun relationship within the study period. From the findings of this study, we conclude that capital flight has significant negative influence on economic growth and unemployment in Nigeria between 1999-2015. Consequently, it was recommended among others that government should create an enabling environment for investment to thrive by as much as possible curtailing the incidence of terrorism by Boko Haram as witnessed in the North, kidnapping that is rampant across the country and militancy by diverse interest groups in the Niger-Delta region. Secondly, capital flight occurs when unscrupulous elements, corrupt leaders and bureaucrats siphon scarce capital resources from their countries to advanced countries. These funds are therefore, not available for investment at home leading to decline in aggregate investment, low economic growth, thus reducing the rate of employment. Since there is a cause-and-effect relationship between capital flight and growth, government should therefore fund and strengthen the different anti-corruption agencies to adequately fight the menace of corruption and official thievery that has become a norm in Nigeria.

Tax avoidance and evasion is a universal problem that has left countries the world over grappling with the ‘twin devils’. Albeit, it seems that Africa has been the worse for it. Coupled with the pervasive corruption in Africa, this burning issue has left Africa with a gaping hole in her collective financial pocket. This paper seeks to explore the problem of tax avoidance and evasion in Africa and the role of corporate multinationals in exacerbating this problem and the extent of damage it has caused to the continent and to find any such solutions that can be a panacea, or even less so, mitigate the harm of this development.

A major question in understanding emerging geographies of property transformation is what discourses are impelling capital into new spaces and places: if powerful economic players are framing urban and rural land globally as part of a common landscape of accumulation, how are they narrating this commensuration? The spread of investment vehicles such as asset-­‐backed securities and real estate investment trusts (REITs) is heightening institutional investors' ability to invest in real property, in various forms: urban real estate, infrastructure, and rural land. Financialization is facilitating new forms of land ownership, large-­‐scale property transfers, and more rapid speculative flows. These transformations stand to reshape landscapes and livelihoods worldwide, from small farmers in the global South to renters in rapidly gentrifying cities in the North. Critical scholarship must dig deeper into why institutional investors, in the United States and beyond, are pushing into these new frontiers. I highlight a significant defensive element cropping up in the financial industry's crisis-­‐era narratives, circulating among investors, economists, and US and international regulators: questions about what investments might be safe in a time of economic volatility. Emerging storylines, and reform measures such as Dodd-­‐Frank and Basel III, look variously to safe assets – sometimes defined as real property, sometimes as anything but real property – to protect individual life chances, stabilize " too big to fail " financial institutions, and secure the future of the international financial system. I argue that this often-­‐paradoxical search for safe assets is a powerful force in contemporary property transformations. The years since the 2008 collapse have been a peculiar time for observers of US cities: a crisis initially triggered by failed financial experiments in US real estate has produced a fresh wave of real property speculation globally, one which is rapidly exporting US urban financial instruments to a startlingly diverse set of landscapes. Banks and fund managers in twenty-­‐six countries and counting across six continents are now using US-­‐style real estate investment trusts (REITs) or REIT-­‐like vehicles to speculate in urban real estate; more radical financial innovators are engineering REITs around farmland and timberland in the United States and beyond; ambitious solar infrastructure developers have tried their hand at asset-­‐backed securitization (ABSs) and even more exotic financial vehicles like yieldcos 1 in their US, European, North and South American, and Asian expansions. Explaining this global phenomenon and apparent paradox is imperative: the lives of billions of people, from country and city, Global North and South, stand to be affected by its transformations in the meanings and treatment of property. Moreover, this new financialization offers an important lens into how formidable but brittle financial institutions in an era of " too big to fail, " and their neoliberal regulators, are attempting to reassert their power in an increasingly unruly world. In this chapter, I suggest that these diverse geographies and forms of real property financialization, in real estate, infrastructure, and rural resource-­‐producing land, are being driven by common storylines and institutional imperatives at the center, even as contingent politics and cultural meanings shape a variety of experiences on the ground. It is tempting to read today's financial experiments as simply capitalism's latest move to transgress traditional boundaries in search of gain. The financial sector's own narratives often advance this sense of an aggressive but successful and creative capitalism, e.g. via Hernando de Soto-­‐style " yield gap " arguments about markets' power to unlock nascent value in the world (e.g. Christophers 2010; White et al. 2012, Li 2014). In contrast, I argue here that defensive understandings are powerfully shaping the new property boom. Major financial institutions in the United States and beyond, and system regulators such as the International Monetary Fund (IMF), US Federal Reserve, and Bank of International Settlements (BIS) have been rocked by repeated shocks since 2008, made no less serious by their ability to displace this pain onto the less powerful. In response, they have promulgated influential

This study investigates the impact of exchange rate misalignment on outward capital flight in Botswana over the period 1980-2015. The study uses the autoregressive distributed lag (ARDL) approach to cointegration and the Toda and Yamamoto (1995) approach to Granger causality. Botswana's currency misalignment was caused by current account imbalances. The most important determinant of capital flight from Botswana is trade openness, which indicates that exportable commodities are misinvoiced leading to net capital outflows. Our main findings show that in the long-run, when the currency is overvalued, the volume of capital flight through trade misinvoicing declines and increasing foreign reserves does not reduce outward capital flight. However, when the currency is undervalued, the volume of capital flight through trade misinvoicing increases and foreign reserves reduce outward capital flight. Investors respond more to prospects of devaluation than to inflation. Botswana should tolerate overvaluation of the pula of only up to 5%. When the pula is overvalued beyond 5%, capital flight increases substantially. The government has to formulate trade regulations and monitor imported and exported commodities. Botswana should also implement capital controls to limit capital smuggling and maintain monetary autonomy.

This study  offers an initial overview of the problem of transfer pricing in Argentina. It reviews how regulatory changes have evolved, the various mechanisms supported by legislation for calculating pricing for intragroup operations, the way in which legal mechanisms become routes for avoidance, evasion and capital flight, the conflicts and results of cases linked to transfer pricing which have come before the courts in Argentina and possible recommendations for policy in the present international context, taking into consideration some alternatives practised by other countries.

An April 2015 World Bank report on attainment of the Millennium Development Goal (MDG) extreme poverty target has revealed that extreme poverty has been decreasing in all regions of the world with the exception of sub-Saharan Africa (SSA), in spite of the sub-region enjoying more than two decades of growth resurgence.  This study builds on a critique of Piketty’s ‘capital in the 21st century’ and recent methodological innovations on reverse Solow-Swan to review empirics on the adoption of common policy initiatives against a cause of extreme poverty in SSA: capital flight. The richness of the dataset enables the derivation of 14 fundamental characteristics of African capital flight based on income-levels, legal origins, natural resources, political stability, regional proximity and religious domination. The main finding reveals that regardless of fundamental characteristic, from a projection date of 2010, a genuine timeframe for harmonizing policies is between 2016 and 2023. In other words, the beginning of the post-2015 agenda on sustainable development goals coincides with the timeframe for common capital flight policies.

This study evaluates the role of capital flight in impelling corruption and unemployment rate in Nigeria. By recognising corruption and unemployment rate as outcome of poor governance and weak institutions, the analytical review explores the undeviating connections between the variables. The study is unique in the sense that it employs a descriptive approach which explicitly identifies capital flight as a contributory factor to the growth of corruption and unemployment rate. Given the weak institutional framework and high political uncertainties, capital flight in Nigeria encourages corrupt practices and further create more vacuum of unemployment due to retarded investment. Therefore, advocating for efficient administration with sound policy framework by opposing capital flight and other related illicit capital transfers will lower the tempo of corruption and unemployment in Nigeria.

The study examines the use of governance tools to fight capital flight by reducing the capital flight trap. Two overarching policy syndromes are addressed in the study. It first assesses whether governance is an effective deterrent to the capital flight trap in Africa, before examining what thresholds of government quality are required to fight the capital flight trap in the continent. The following findings are established. Evidence of a capital flight trap is apparent because past values of capital flight have a positive effect on future values of capital flight. The net effects from interactions of the capital flight trap with political stability, regulation quality, economic governance and corruption-control on capital flight are positive.  The critical masses at which “voice & accountability” and regulation quality can complement the capital flight trap to reduce capital flight are respectively, 0.120 and 0.680, which correspond to the best performing countries. Policy implications are discussed.

The aim of the study was to examine the macroeconomic determinants of capital flight from the Sub-Saharan African (SSA) countries between the period 1981-2015. The study used secondary data obtained from the World Bank Development Indicators (WDI) and applied the autoregressive distributed lag (ARDL) model technique to determine the macroeconomic factors influencing capital flight from the SSA region. The results of the study showed that economic growth had a significant negative relationship with capital flight in both the long-run and shortrun. Also, the outcome of the study revealed that external debt had a significant positive relationship with capital flight in the short-run. In addition, the study noted that economic variables such as interest rate spread, inflation, and trade openness have no significant influence on capital flight in the SSA region. Overall, the study revealed that economic growth rate and external debt constitute the macroeconomic fundamentals that influence the rate of capital flight from SSA countries.

El presente documento se ha propuesto realizar, en primer lugar, un
relevamiento de las mediciones de la fuga de capitales que se han aplicado para el caso de la Argentina y las metodologías utilizadas.
Y en segundo lugar, aplicar la metodología más acertada, en función de la información disponible, a un sector particular, como lo es el complejo sojero, que dio cuenta del 24% del total de las exportaciones del país en el año 2013. El análisis de las exportaciones de dicho sector, a partir del acceso a datos de despachos aduaneros, permite realizar una comparación directa entre los precios de las exportaciones efectivamente realizadas, y los de las cotizaciones directamente relacionadas con los productos comercializados.

A 2015 World Bank report on the achievement of Millennium Development Goals (MDGs) revealed that since the 1990s, extreme poverty has been decreasing in all regions of the world with the exception of Africa where about 50 percent of countries in Sub-Saharan Africa did not achieve the MDG extreme poverty target despite the sub-region enjoying more than two decades of GDP growth resurgence.  The purpose of this chapter is twofold. First to understand the interconnections between the large pool of capital transferred to the OECD countries and the corrupt deposits of stolen public funds. Second, to illustrate how such diversion of funds overseas are related to the spread of poverty in the African economies. We enunciate a ‘poverty multiplier theory’ and propose a model for its application within an African context. The ‘poverty multiplier theory’ postulates that: (i) one unit of currency deposited abroad represents a loss in financial development at home (ii) a fraction of  the unit currency placed in foreign bank accounts is redirected to the domestic economy in the form of external debt. This external debt is further siphoned overseas through interest and loan principal repayment.  Policy implications of these processes are discussed.

The papers in the present SUERF Study is a selection of the papers presented at a SUERF Workshop and Special OeNB East Jour Fixe held at Oesterreichische Nationalbank in Vienna on 23 January 2009. In his opening remarks (chapter 2), Ewald Nowotny, Governor of the Oesterreichische Nationalbank referred to Austrian banks engagement with neighbouring Central and Eastern European Countries. The

The objective of this work is to determine the role of the misalignment of the real exchange rate in capital flight for a sample of developing countries over the period 1980-2010. Firstly, we calculated the degrees of misalignment for all countries of our sample, which degrees were introduced as a determinant of capital flight. Then, we examined the effect of the overvaluation and the undervaluation on capital flight. The results show that a strong undervaluation may discourage capital flight, while a strong overvaluation can stimulate it.

The papers in the present SUERF Study is a selection of the papers presented at a SUERF Workshop and Special OeNB East Jour Fixe held at Oesterreichische Nationalbank in Vienna on 23 January 2009. In his opening remarks (chapter 2), Ewald Nowotny, Governor of the Oesterreichische Nationalbank referred to Austrian banks engagement with neighbouring Central and Eastern European Countries. The current crisis should not make people forget the fact that Austrian banks deep engagement with the neighbouring countries is one of the success stories in Austrian economic history. Since the fall of the Berlin Wall, Austrian banks have become one of the driving forces of the process of structural adjustment, modernization of business practices, and deepening of financial intermediation in the region. At end 2007, in Central Europe, the share of Austrian banks surpassed a fifth of aggregate sector assets, in Southeastern Europe even a third of the respective total. A considerable share of the ear...

The papers in the present SUERF Study is a selection of the papers presented at a SUERF Workshop and Special OeNB East Jour Fixe held at Oesterreichische Nationalbank in Vienna on 23 January 2009. In his opening remarks (chapter 2), Ewald Nowotny, Governor of the Oesterreichische Nationalbank referred to Austrian banks engagement with neighbouring Central and Eastern European Countries. The

Wealth leaves weak and poor countries for the strong and rich, and secretly. Some of it is connected to crime. All this naturally has outcomes for both the rich and the poor.
This laundering, often euphemistically termed “private banking”, is centered in the City of London though
generally postmarked elsewhere and it is important business for American banks, as documented by the Permanent SubCommittee on Investigations. So it is an effort to remind ourselves that the Department of the Treasury once devised plans to prevent the worldwide concealment of wealth. Those were rapidly abandoned.
This lecture presents a few snapshots of how such matters are arranged in India and the United Kingdom, as well as the consequences. It attempts to offer some idea of the significance of this business, and draw on classical political economy to explain it.

The purpose of this study is to assess the thresholds at which military expenditure modulates the effect of terrorism on capital flight. We employed a panel data of 37 African countries from 1996-2010.The empirical evidence was based on: (i) baseline contemporary and non-contemporary OLS, (ii) contemporary and non-contemporary fixed effects regressions to account for the unobserved heterogeneity, (iii) the Generalised Method of Moments to account for the capital flight trap and (iv) Quantile Regressions (QR) to account for initial levels of capital flight.  The study found that the thresholds are apparent exclusively in Quantile Regressions with military expenditure thresholds ranging from:  4.224 to 5.612 for domestic terrorism, 5.734 to 7.363 for unclear terrorism and 4.710 to 6.617 for total terrorism. No thresholds are apparent in transnational terrorism related regressions. Depending on the terrorist target, the findings broadly show that a critical mass of between 4.224 and 7.363 of military expenditure as a percentage of GDP is needed to reverse the negative effect of terrorism on capital flight. In spite of the growing consensus of the need to utilise military expenditure to help combat terrorism, our understanding of the threshold at which military expenditure completely dampens the negative effect of terrorism on capital flight remains largely underexplored. We capitalize on panel data of 37 African countries to address this lacuna in our understanding of this important issue.

Resumen La presente colaboración es una primera aproximación a la problemática de los precios de transferencia en Argentina, repasando la evolución de los cambios normativos en la materia; los distintos mecanismos avalados por la legislación para el cálculo de los precios de las operaciones intragrupo; la manera en que los mecanismos legales se convierten en vías para la elusión, evasión y fuga de capitales; los conflictos y resultados de los casos vinculados a precios de transferencia que han llegado a los tribunales en Argentina; y las recomendaciones de política imaginables en el presente contexto internacional y teniendo en cuenta algunas alternativas ensayadas por otros países. Abstract This collaboration is a first approach to the problem of transfer pricing in Argentina, reviewing the evolution of regulatory changes in matter ; different mechanisms guaranteed by legislation for the calculation of prices of intragroup transactions; how legal mechanisms become avenues for avoidance, evasion and capital flight; conflict and outcomes of cases related to transfer prices that have reached the courts in Argentina; and policy recommendations unimaginable in this international context and considering several alternatives tested by other countries.

Capital flight remains significant for public officials in East Africa member states, especially since the emergence of the foreign debt crisis and the associated drastic decline in capital inflows from developed nations and Bretton Woods institutions. Given their smaller resource base, debt accumulation and budget deficit, the problem of capital flight in developing nations requires examination. The study examined the effect of accumulating external debt on capital flight in East African countries that includes Kenya, Tanzania, Uganda, Rwanda, and Burundi using panel data for the period 1988 to 2018. The study was guided by the debt-overhang theory that helped to analyze the motive of fleeing capital from developing economies to developed countries as a result of foreign debt accumulation. Secondary data was sourced from World Bank and Statistical Abstract reports. Ordinary least squares technique combined with the fixed effect estimation approach was used during analysis. The fixed effect regression findings reported that external debt had a positive and significant effect on capital flight in East African countries. A substantial fraction of the borrowed funds is being captured by African political elites who in turn channel the cash abroad in form of capital flight, thus, increased capital outflow indebts citizens through increased external debt to finance public spending. From the result, the policymakers should pursue debt financing, that is, EAC states should borrow from new lenders at a relatively lower interest rate and use the proceeds from the new loan to repay the old loans to avoid the risks of external loan defaults, so as to reduce the debt effect on capital flight.