Evaluation of the Capital Flight from Country - Case of the Republic of Moldova
Economic Insights – Trends and Challenges, Vol. 4, 2015
9 Pages Posted: 6 Apr 2016
Date Written: 2015
Economic recessions and political crises in recent decades contribute to the capital flight from the Republic of Moldova. At the same time, the problems of capital flight are studied insufficiently in the country’s research. In this context, this study will fill out the gap by delivering new knowledge. The research is based on the direct assessment method of capital flight, by using the thorough analysis of the balance of payments. Capital flight from Moldova doesn’t represent normal decisions of profit maximizing by individuals, and cannot be explained as traditional investment abroad on diversification grounds. It is an on-going process that is developed mainly via the bank system of country. The dimension of capital flying was accelerated last years and it can affect the liquidity of the bank sector of Republic of Moldova.
Keywords: capital flight; balance of payments; bank system; export of capital
JEL Classification: E6; G3
Suggested Citation: Suggested Citation