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Trillion Dollar Estimate: Illicit Financial Flows from Developing Countries

Nitsch, Volker (2016)
Trillion Dollar Estimate: Illicit Financial Flows from Developing Countries.
Report, Erstveröffentlichung

Kurzbeschreibung (Abstract)

Recent estimates suggest that developing countries lose about 1 trillion US dollars each year due to illicit financial flows. This paper reviews the empirical methodology that underlies those estimates. Various critical aspects of the analytical approach are highlighted, focusing in particular on deficiencies in the use of mirror trade statistics to quantify the extent of capital outflows due to trade misinvoicing. Serious issues in the empirical analysis include, among others, arbitrary assumptions, mixed methodologies and skewed sampling. As a result, it is argued that the quantitative results obtained from those exercises have no substantive meaning. The trillion-dollar estimate of illicit financial flows from developing countries, therefore, lacks evidence and is uncorroborated.

Typ des Eintrags: Report
Erschienen: 2016
Autor(en): Nitsch, Volker
Art des Eintrags: Erstveröffentlichung
Titel: Trillion Dollar Estimate: Illicit Financial Flows from Developing Countries
Sprache: Englisch
Publikationsjahr: Dezember 2016
Ort: Darmstadt
Reihe: Darmstadt Discussion Papers in Economics
Band einer Reihe: 227
URL / URN: http://tuprints.ulb.tu-darmstadt.de/5437
Kurzbeschreibung (Abstract):

Recent estimates suggest that developing countries lose about 1 trillion US dollars each year due to illicit financial flows. This paper reviews the empirical methodology that underlies those estimates. Various critical aspects of the analytical approach are highlighted, focusing in particular on deficiencies in the use of mirror trade statistics to quantify the extent of capital outflows due to trade misinvoicing. Serious issues in the empirical analysis include, among others, arbitrary assumptions, mixed methodologies and skewed sampling. As a result, it is argued that the quantitative results obtained from those exercises have no substantive meaning. The trillion-dollar estimate of illicit financial flows from developing countries, therefore, lacks evidence and is uncorroborated.

Freie Schlagworte: misinvoicing, mispricing, capital flight
URN: urn:nbn:de:tuda-tuprints-54379
Zusätzliche Informationen:

JEL Code: F14; F38

Sachgruppe der Dewey Dezimalklassifikatin (DDC): 300 Sozialwissenschaften > 330 Wirtschaft
Fachbereich(e)/-gebiet(e): 01 Fachbereich Rechts- und Wirtschaftswissenschaften
01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete
01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Internationale Wirtschaft
Hinterlegungsdatum: 01 Mai 2016 19:55
Letzte Änderung: 25 Okt 2023 09:59
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