Capital flight, external debt, and domestic policies

The international debt crisis of 1982 revealed that unrecorded private capital outflows from developing countries occurred simultaneously with borrowing from international commercial banks. Current interest in capital flight has been generated by the possibility that the resurgence of private capital inflows to these countries may be limited to the return of flight capital. A simple public finance model shows that simultaneous capital outflows and inflows can be explained as the result of private international arbitrage of domestic policies. The paper discusses the welfare consequences of gross two-way capital flows that take advantage of opportunities to avoid taxation or generate subsidy income.Capital movements ; Developing countries ; Finance, Public

Capital Flight, External Debt and Domestic Policies

It is now well documented that capital flight has been a dominant feature of capital movements between developing and industrial countries. Since 1988 reductions in the stock of flight capital more than account for private capital flows to emerging markets. This suggests that what appears to be a diversification of portfolios of residents of developed countries may be a restoration of 'home bias' in the portfolios of residents of developing countries. We show that changes in the stock of capital flight can increase or decrease welfare depending on the structure of distortionary taxes and subsidies on capital income and the effects of capital flight on the tax base.

Is the debt crisis history? Recent private capital inflows to developing countries

The outlook for economic development for an important group of middle-income countries has again been buoyed by substantial private capital inflows in the 1990s. As in the 1970s, this development has been met with cautious optimism. It is generally accepted that these countries need resource transfers from the rest of the world to support capital formation and growth. It is also generally accepted that these private capital flows make the allocation of resources more efficient. But there is concern that a rapid reversal of market sentiment could impose considerable adjustment costs on these same economies. The authors try to quantify what many consider to be the main reasons debtor countries have access to capital markets again: (a) Domestic policy reform in the debtor countries. (b) Debt and debt service reduction, usually associated with Brady Plan restructuring. (c) Changes in the external market, such as changes in interest rates in industrial countries. They argue that a useful barometer for access to new loans is the market value of existing sovereign debt. It follows that a quantitative analysis of the factors that caused the market value of sovereign debts to rise rapidly after 1989 would also improve understanding of the forces behind the renewed access to international capital. Empirical historical evidence suggests that fiscal reform, privatization, and debt reduction are useful in explaining relative improvements in the standing of debtor countries in international credit markets. Debtor countries with strong reform programs, in other words, are better prepared to withstand deterioration in the external environment. But the reduction in dollar interest rates since 1989 appears to be the chief factor in the debtor countries'renewed access to international loans. The authors estimate the effect of increases in dollar interest rates and conclude that the typical debtor country remains vulnerable to increases in interest rates that are well within the range of recent experience.Economic Theory&Research,Environmental Economics&Policies,Banks&Banking Reform,Strategic Debt Management,Financial Intermediation

Recent Private Capital Inflows to Developing Countries: Is the Debt Crisis History?

This empirical study finds that while debt reduction and policy reforms in debtor countries have been important determinants of renewed access to international capital markets, changes in international interest rates have been the dominant factor. We calculate the effects of changes in international interest rates for a 'typical' debtor country. We conclude that increases in interest rates associated with business cycle upturn in industrial countries could depress the secondary market prices of existing debt to levels inconsistent with continued capital inflows.

Effect of Guard Bed Material on the Hydrotreatment of Used Lubricating Oils

An investigation into the effectiveness of using five different guard beds in a trickle bed reactor used to hydrofinish reclaimed spent oil was made. A full evaluation of the effectiveness of the guard beds' was made by studying various liquid characteristics and catalyst activity. On the basis of these analyses, one guard bed proved to be more effective than the others.Chemical Engineerin

Communities and Local Government and Work and Pensions Committees. Oral evidence: Future of Supported Housing, 27th February, 2017. Transcript of evidence session.

Evidence given on 27th February, 2017 by Dr Jonathan Hobson to Commons Joint Select Committee inquiry on the Future of Supported Housing. Evidence based on work by Dr Jon Hobson, Dr Kenny Lynch, Pauline Dooley

Apakah Hutang merupakan Sejarah Krisis? Arus Masuk Modal Swasta ke Negara-negara Berkembang'

Harapan tentang pembangunan ekonomi kelompok penting middle income countries telah ditahan kembali oleh arus masuk modal swasta yang subtansial pada tahun 1990-an. Sebagaimana tahun 1970-an, pembangunan ekonomi ini telah diterima dengan optimisme yang berhati-hati. Studi empiris ini membuktikan bahwa meskipun reduksi hutang luar negeri dan reformasi kebijakan di negara-negara debitur telah menjadi determinan penting atas akses yang diperbaharui dalam pasar modal internasional, namun perubahan tingkat bunga internasional telah menjadi faktor yang dominan. Kami menghitung pengaruh perubahan tingkat bunga internasional untuk negara-negara debitur "tertentu". Kesimpulannya bahwa peningkatan tingkat bunga bersamaan dengan kenaikan siklus bisnis di negara-negara industri dapat menekan harga pasar sekunder hutang yang ada ke tingkat yang tidak sejalan dengan arus modal selanjutnya

Communities and Local Government and Work and Pensions Committees. Oral evidence: Future of Supported Housing, 27th February, 2017. Transcript of evidence session.

Evidence given on 27th February, 2017 by Dr Jonathan Hobson to Commons Joint Select Committee inquiry on the Future of Supported Housing. Evidence based on work by Dr Jon Hobson, Dr Kenny Lynch, Pauline Dooley