Uji Kausalitas : Utang Luar Negeri dan Capital Flight di Indonesia, 1974-2002
Some economists have argued that there is no relationship between external debt and capital flight, while others have detected such a relation. Boyce and Ndikumana (2002) distinguish four possible causal links such as, debt-driven capital flight, debt fueled capital flight, flight-driven capital fli...
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| Published in | Economic journal of emerging markets Vol. 10; no. 3 |
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| Main Author | |
| Format | Journal Article |
| Language | English |
| Published |
Universitas Islam Indonesia
01.07.2009
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| Online Access | Get full text |
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| Summary: | Some economists have argued that there is no relationship between external debt and capital flight, while others have detected such a relation. Boyce and Ndikumana (2002) distinguish four possible causal links such as, debt-driven capital flight, debt fueled capital flight, flight-driven capital flight, and flight fueled external borrowing. The study examines a causal relationship between external debt and capital flight of Indonesia for the period 1974-2002. We use error correction model to examine a causal rela¬tionship. We find external debt related to capital flight on Indonesia as a feedback/bilateral causality. This empirical evidence supports the debt fueled capital flight and flight fueled external borrowing hypothesis. Keywords: causal relationship, external debt, capital flight |
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| ISSN: | 2086-3128 2502-180X |