Illicit financial flows and developing countries: A review of methods and evidence

Research output: Contribution to journal › Journal article › Research › peer-review

Standard

Illicit financial flows and developing countries : A review of methods and evidence. / Brandt, Kasper.

In: Journal of Economic Surveys, Vol. 37, No. 3, 2023, p. 789-820.

Research output: Contribution to journal › Journal article › Research › peer-review

Harvard

Brandt, K 2023, 'Illicit financial flows and developing countries: A review of methods and evidence', Journal of Economic Surveys, vol. 37, no. 3, pp. 789-820. https://doi.org/10.1111/joes.12518

APA

Brandt, K. (2023). Illicit financial flows and developing countries: A review of methods and evidence. Journal of Economic Surveys, 37(3), 789-820. https://doi.org/10.1111/joes.12518

Vancouver

Brandt K. Illicit financial flows and developing countries: A review of methods and evidence. Journal of Economic Surveys. 2023;37(3):789-820. https://doi.org/10.1111/joes.12518

Author

Brandt, Kasper. / Illicit financial flows and developing countries : A review of methods and evidence. In: Journal of Economic Surveys. 2023 ; Vol. 37, No. 3. pp. 789-820.

Bibtex

@article{09dafa54a15d424d8825f243d1636d9f,
title = "Illicit financial flows and developing countries: A review of methods and evidence",
abstract = "Illicit financial flows (IFFs) constitute a major challenge for development in low-income countries, as domestic resource mobilization is imperative for providing crucial public services. The current paper focuses exclusively on the economic dimension of IFFs, thereby excluding topics as drugs trade, money laundering, and human trafficking. While several methods offer to measure the magnitude of IFFs, each has its benefits and drawbacks. Critically, methods based on the balance of payments identity may capture licit as well as illicit flows, and a method based on macroeconomic trade discrepancies suffers from doubtful assumptions. The most convincing estimate to date demonstrates that individuals hold financial assets worth around 10% of global GDP in tax havens. Evidence further indicates that developing countries are more exposed to individuals and multinational enterprises illicitly transferring money out of the country.",
keywords = "domestic resource mobilization, illicit financial flows, multinational enterprises, profit shifting, tax havens",
author = "Kasper Brandt",
note = "Publisher Copyright: {\textcopyright} 2022 The Authors. Journal of Economic Surveys published by John Wiley & Sons Ltd.",
year = "2023",
doi = "10.1111/joes.12518",
language = "English",
volume = "37",
pages = "789--820",
journal = "Journal of Economic Surveys",
issn = "0950-0804",
publisher = "Wiley-Blackwell",
number = "3",

}

RIS

TY - JOUR

T1 - Illicit financial flows and developing countries

T2 - A review of methods and evidence

AU - Brandt, Kasper

N1 - Publisher Copyright: © 2022 The Authors. Journal of Economic Surveys published by John Wiley & Sons Ltd.

PY - 2023

Y1 - 2023

N2 - Illicit financial flows (IFFs) constitute a major challenge for development in low-income countries, as domestic resource mobilization is imperative for providing crucial public services. The current paper focuses exclusively on the economic dimension of IFFs, thereby excluding topics as drugs trade, money laundering, and human trafficking. While several methods offer to measure the magnitude of IFFs, each has its benefits and drawbacks. Critically, methods based on the balance of payments identity may capture licit as well as illicit flows, and a method based on macroeconomic trade discrepancies suffers from doubtful assumptions. The most convincing estimate to date demonstrates that individuals hold financial assets worth around 10% of global GDP in tax havens. Evidence further indicates that developing countries are more exposed to individuals and multinational enterprises illicitly transferring money out of the country.

AB - Illicit financial flows (IFFs) constitute a major challenge for development in low-income countries, as domestic resource mobilization is imperative for providing crucial public services. The current paper focuses exclusively on the economic dimension of IFFs, thereby excluding topics as drugs trade, money laundering, and human trafficking. While several methods offer to measure the magnitude of IFFs, each has its benefits and drawbacks. Critically, methods based on the balance of payments identity may capture licit as well as illicit flows, and a method based on macroeconomic trade discrepancies suffers from doubtful assumptions. The most convincing estimate to date demonstrates that individuals hold financial assets worth around 10% of global GDP in tax havens. Evidence further indicates that developing countries are more exposed to individuals and multinational enterprises illicitly transferring money out of the country.

KW - domestic resource mobilization

KW - illicit financial flows

KW - multinational enterprises

KW - profit shifting

KW - tax havens

U2 - 10.1111/joes.12518

DO - 10.1111/joes.12518

M3 - Journal article

AN - SCOPUS:85133909955

VL - 37

SP - 789

EP - 820

JO - Journal of Economic Surveys

JF - Journal of Economic Surveys

SN - 0950-0804

IS - 3

ER -

ID: 346487174