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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
This is a colossal plundering of the Nigerian economy through capital flight and a huge loss of Nigerian jobs.
Meggison said, 'As we know, foreign carriers dominate 100 per cent of the Nigerian sky with capital flight of about $3bn.
McDonnell said in 2017 that Labour had to "scenario-plan" for capital flight and a run on sterling, even though he didn't think they were likely.
The ECAP president said most of capital flight cases were being reported from Peshawar and Quetta and held the unchecked Afghan transit trade responsible for the problem.
GCC economies, with the exception of Kuwait, have their currencies pegged to the dollar, usually hike domestic lending and deposit rates in tandem with the Fed rates to avoid currency speculation and potential capital flight resulting from interest rate arbitrage opportunities.
Capital flight came to nearly $135 billion over the decade from 2006-7 to 2016-17, the daily Iran reported.
Saudi Arabia is struggling with rising US rates as it tries to strike a balance between boosting growth and averting capital flight that would put pressure on the riyal's currency peg, Arabian Business reported.
But in a country like China, where capital flight is illegal and investors attempt to evade capital controls, transactions might not be recorded at all.
Capital flows to EMs were hit by successive bouts of capital flight in 2013-16, with non-resident inflows falling from $418 billion in 2012 to $100 billion in 2016.
The Bank of Korea (BOK) needs to consider raising its key rate later this year to prevent possible capital flight from the country with the U.S.
A top official with China's central bank has said that bad loans have stabilised in the nation and pressure from capital flight has eased.
Immediate measures need to be taken to stop brain drain or human capital flight, which is on the rise in Pakistan.