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Capital Flight from Russia
Author(s) -
Loungani Prakash,
Mauro Paolo
Publication year - 2001
Publication title -
world economy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.594
H-Index - 68
eISSN - 1467-9701
pISSN - 0378-5920
DOI - 10.1111/1467-9701.00376
Subject(s) - capital flight , capital (architecture) , economics , corporate governance , medium term , scale (ratio) , macroeconomics , economic system , international economics , market economy , finance , physics , archaeology , quantum mechanics , history , incentive
This paper documents the scale of capital flight from Russia, compares it with that observed in other countries, and reviews policy options. The evidence from other countries suggests that capital flight can be reversed once reforms take hold. The paper argues that capital flight from Russia can only be curbed through a medium‐term reform strategy aimed at improving governance and macroeconomic performance, and strengthening the banking system. Capital controls result in costly distortions and should gradually be phased out as part of that medium‐term strategy.