capital flight


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Related to capital flight: Human capital flight

Capital flight

The transfer of capital abroad in response to fears of political risk.

Capital Flight

A situation in which foreign investors remove their investments from a particular country because of some increase in country risk. Capital flight may occur because of government instability, the sudden appearance of high inflation, or because another country's government offers a better deal. Governments almost always try to prevent capital flight from occurring, but this is not always possible. See also: Foreign direct investment.

capital flight

The shifting of funds out of a country to avoid confiscation, controls, or depreciation. Capital flight results in further deterioration of a currency's exchange rate.
References in periodicals archive ?
The authors accept that not all capital flight involves illicitly acquired funds and so they examine the possibility that some is actually legitimate investor portfolio choice.
This practice basically rules out the possibility of massive capital flight that could destabilize China's financial system.
Capital flight rose sharply in 3Q11 on increased market volatility and fears that a possible deceleration in economic growth in the US and Europe will have negative consequences for the Russian economy
A new government should help restore confidence and create an environment where the pound can move more freely with minimised risk of triggering a second major capital flight, says HSBC.
The modus operandi of capital flight from Pakistan generally includes the following: capital flight is primarily fed through "leaked" remittances of Pakistani expatriate workers who transfer their foreign savings through Hundi/Hawala system, under-invoicing of exports, over-invoicing of imports, export through the baggage of overseas travellers, and transfer of capital through precious metals, antiques, etc.
So far there is no indication of a major capital flight from the island," he said.
It is important to mention that the government should redouble its efforts to curb terrorism and arrest terrorists and criminals to improve law and order situation in the country for creating an investment friendly environment to stop capital flight.
led to further borrowing especially in countries led by corrupt and inept regimes that squandered borrowed funds through embezzlement and capital flight.
The capital flight was apparent on the Sao Paulo Stock Exchange, where the benchmark Ibovespa index closed 0.
The second hall takes a leap to the 1970s: military dictatorship, foreign borrowing, capital flight, industries going belly up, rising unemployment rates and state assumption of private debts.
However, there is concern that the current estate and gift tax structure in Taiwan may be contributing to resource distortions and capital flight as a result of efforts by wealthy citizens and residents to avoid taxation.
If we start to dig into this, it will lead to capital flight, emigration, and destruction".