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Trillion Dollar Estimate: Illicit Financial Flows from Developing Countries

Nitsch, Volker :
Trillion Dollar Estimate: Illicit Financial Flows from Developing Countries.
[Online-Edition: http://tuprints.ulb.tu-darmstadt.de/5437]
In: Darmstadt Discussion Papers in Economics , 227 . Darmstadt
[Report], (2015)

Offizielle URL: 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.

Typ des Eintrags: Report
Erschienen: 2015
Autor(en): Nitsch, Volker
Titel: Trillion Dollar Estimate: Illicit Financial Flows from Developing Countries
Sprache: Englisch
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.

Reihe: Darmstadt Discussion Papers in Economics
Band: 227
Ort: Darmstadt
Freie Schlagworte: misinvoicing, mispricing, capital flight
Fachbereich(e)/-gebiet(e): Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete
Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Internationale Wirtschaft, International Economics
Fachbereich Rechts- und Wirtschaftswissenschaften
Hinterlegungsdatum: 01 Mai 2016 19:55
Offizielle URL: http://tuprints.ulb.tu-darmstadt.de/5437
URN: urn:nbn:de:tuda-tuprints-54379
Zusätzliche Informationen:

JEL Code: F14; F38

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