Trillion dollar estimate: Illicit financial flows from developing countries

Arbeitspapier

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.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: Darmstadt Discussion Papers in Economics ; No. 227

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Empirical Studies of Trade ; International Financial Policy: Financial Transactions Tax; Capital Controls
• Thema: trade misinvoicing ; mispricing ; capital flight

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Nitsch, Volker
• Ereignis: Veröffentlichung
• (wer): Technische Universität Darmstadt, Department of Law and Economics
• (wo): Darmstadt
• (wann): 2016

Weitere Informationen

• Handle: http://hdl.handle.net/10419/141281
• URN: urn:nbn:de:tuda-tuprints-54379
• Letzte Aktualisierung: 10.03.2025, 11:44 MEZ