CAPITAL FLIGHT FROM LATIN-AMERICA

This paper focuses on capital flight from Latin America during the 1970s and 1980s. After estimating the extent of such flight, I suggest that capital flight imposes growth costs, erodes the tax base, and worsens income distribution. I then use regression analysis to investigate the causes of capital flight as well as the role of capital controls and IMF programs in slowing flight. I conclude by criticizing the current policy approach to the capital flight problem and suggesting some new directions. © 1990.