Affiliation:
1. Sultan Qaboos University, Department of Economics and Finance
Abstract
Capital flight from a small developing country in the Asia Pacific region, Fiji, is estimated using a variant of the residual approach. The findings show that between 1991 and 2009, approximately US$5 billion, averaging some US$265 million per annum has leaked out of Fiji in the form of capital flight. On an annual average basis, this has translated into 12 percent of Fiji’s gross domestic product; 19 percent of imports bills and 17 percent of lost tax revenues. The implications of this finding is that Fiji’s policymakers need to institute policies that focus on long-term secure and stable business and political environment. Some of these may include making the domestic business and investment environment more attractive, reforming the foreign investment tax incentives, retaining qualified and skilled people, eliminating institutional weaknesses in banking systems, and effective enforcement of banking and customs regulations relating to transfers of financial capital.
Subject
Social Sciences (miscellaneous),Development,Education,Geography, Planning and Development,Health(social science)
Reference29 articles.
1. External debt, capital flight and stabilization policy: the experiences of Barbados, Guyana, Jamaica and Trinidad and Tobago;Bennett;Socialand Economic Studies,1988
2. Capital flight under uncertainty about domestic taxation and trade liberalization;Bhattacharya;Journal of Development Economics,1999
3. Risk aversion, wealth and international capital flows;Clark;Review of International Economics,1998
4. Flight capital as portfolio choice;Collier;The World Bank Economic Review,2001
Cited by
1 articles.
订阅此论文施引文献
订阅此论文施引文献,注册后可以免费订阅5篇论文的施引文献,订阅后可以查看论文全部施引文献