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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| Format: | Article |
| Language: | English |
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Universitas Islam Indonesia
2009-07-01
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| Series: | Economic Journal of Emerging Markets |
| Online Access: | https://journal.uii.ac.id/JEP/article/view/614 |
| 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 |