Arbeitspapier
Capital flight to Germany: Two alternative measures
We use two measures to study two capital flight channels for Germany. One measure is based on the concept of trade misinvoicing and one on net claims and liabilities in the Eurosystem of central banks. For both measures, we propose refinements to enhance the assessment of capital flight. We find that capital flight towards Germany via these two channels has been quite sizable in the recent decade and can tally to about 2% of GDP annually. Regarding their determinants, we show that the two capital flight measures are driven by both common and measure-specific factors. Traditional determinants such as covered interest differentials only play a limited role, while crisis-specific factors such as economic policy uncertainty, the ECB collateral policy, as well as currency misalignment are driving factors of the investors' apparent flight-to-safety behavior.
- Language
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Englisch
- Bibliographic citation
-
Series: Working Paper ; No. 115
- Classification
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Wirtschaft
Current Account Adjustment; Short-term Capital Movements
International Financial Markets
- Subject
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Illicit Capital Flight
Trade Misinvoicing
TARGET2 Balance
Flight-to-safety
Economic Policy Uncertainty
- Event
-
Geistige Schöpfung
- (who)
-
Cheung, Yin-Wong
Steinkamp, Sven
Westermann, Frank
- Event
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Veröffentlichung
- (who)
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Osnabrück University, Institute of Empirical Economic Research
- (where)
-
Osnabrück
- (when)
-
2019
- Handle
- Last update
- 10.03.2025, 11:41 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cheung, Yin-Wong
- Steinkamp, Sven
- Westermann, Frank
- Osnabrück University, Institute of Empirical Economic Research
Time of origin
- 2019
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