ILLICIT CAPITAL FLOW IN CONTEMPORARY ECONOMIES’ DEVELOPMENT

  • Lyudmila Guzikova Peter the Great St. Petersburg Polytechnic University, Saint – Petersburg
  • Igor Lukevich Peter the Great St. Petersburg Polytechnic University, Saint – Petersburg
Keywords: illicit capital export, foreign exchange controls, balance of payments, regression model

Abstract

The paper looks into the issues of evaluation and forecast of illicit capital flows. Theoretical statements are analyzed to confirm or reject the reasonability of rigid foreign exchange controls and regulation. A multi-factor linear regression model has been built on the assumption that the volume of illicit capital export depends on the volume of its trans-border flow, which is reflected in the items of the balance of payments of Russia. The model helps to forecast the illicit capital export for the period not yet covered in the public sources of information. Conclusions are made concerning the areas of foreign exchange control which is an important issue for today.

Author Biographies

Lyudmila Guzikova, Peter the Great St. Petersburg Polytechnic University, Saint – Petersburg

Doctor of economics, professor in Graduate School of Public Administration and Financial Management,  St. Petersburg, Russia

Science interests are concentrated in house market functioning, financial issues of national economy development.

Published more than 70 research papers and 5 students manuals.

Igor Lukevich, Peter the Great St. Petersburg Polytechnic University, Saint – Petersburg

Doctor of economics, professor in Graduate School of Public Administration and Financial Management,  St. Petersburg, Russia

Science interests financial markets, international banking.

Published more than 45 research papers.

References

Artemov, N.M. (2013). Problems and prospects of legal regulation of currency responsibility in the Russian Federation. The issues of economics and law, 1, 7-13.

Bernshtam, B.E. (2013). Specifics of “Capital Flight” from Russia. Bulletin of Tomsk State University. Economics. 3, 113-119.

Bulatov, A.S. (1999). Parameters and Evaluation of the Scales of Capital Outflow from Russia. Money and credit. 12, 68-72.

Bulatov, A.S. (2014). The Russian model of capital export. MGIMO-University. Moscow, 119 p.

Central Bank of the Russian Federation (2017). Methodological commentary to the balance of payment of the Russian Federation. [Electronic resource] URL: http://www.cbr.ru/statistics/credit_statistics/meth-kom-bop.pdf (date of visit 08.02.2017)

Central Bank of the Russian Federation, (2017). URL: www.cbr.ru (date of visit 08.02.2017)

Central Bank of the Russian Federation. (2017). Statistics of the external sector. Balance of payments (RPB6), URL: www.cbr.ru

Cuddington, J.T. (1986). Capital Flight: Issues and Explanations. Princeton Studies in International Finance 58, 44. Princeton University, Princeton.

Dooley, M. (1988). Capital flight: A response to differences in financial risks. IMF Staff papers 35, 422-436.

Dougherty, C. (2016). Introduction to Econometrics, 5the ed. Oxford University Press, 5, 608.

Erbe, S. (1985). The Flight of capital from Developing Countries. Intereconomics, 20, 268-275.

Förster, E., Rönz, B. (1979). Methoden der korrelations- undregressionsanalyse. Verlag Die Wirtschaft, Berlin, 324.

Global Financial Integrity. (2017). URL: www.gfintegrity.org (date of visit 08.02.2017)

Guzikova, L.A., Lukevich, I.N. (2016). New financial reality in the light of monetary theory. Konzeptuelle grundsatze des wirtschaftswwachstums bei der globalisierung. Kollektive monographie. Herausgegeben vom doktor der wirtschaftssenschaften. Professor W. Jatsenko.- Verlag SWG index GmbH Nurnberg, Deutschland, 146-157.

IFinance, 2013, Illicit outflow of capital in the years 2002-2011. URL: http://global-finances.ru/global-financial-integrity-nezakonnyiy-ottok-kapitala-v-2002-2011-godah/ (date of visit 10.02.2017)

Kislyak, N.V. (2007). Econometrics. State educational institution of higher professional education “Ural State University named after A.M. Gorky”. Ekaterinburg, 154

Kornilov, M.Y., Lobachev, S.V. (2008). How to evaluate the volume of capital flying from Russia. Economic bulletin of Rostov State University, 1, 78-85.

Lessard, D.R., Williamson, J. (1987). Capital Flight and Third World Debt, Institute for International Economics, Washington, DC, 97-100.

Lukevich, I.N. (2002). Evaluation of illicit capital flow in Russia. Financial world. Moscow. 145-152.

Mirkin. Y.M. (2013). Railway station for investments. Direct investments, 10, 14‒16.

Nikolova, L.V., Kuporov, J.J., Rodionov, D.G. (2015). Risk management of innovation projects in the context of globalization. International Journal of Economics and Financial Issues, 5, 73-79.

Polteva, T.V., Lukyanova E.S. (2015). Practical application of derivatives as risk hedging tools. Bulletin of Nizhny Novgorod State University of Engineering and Economics, 1, 69-74.
Published
2018-02-01
How to Cite
Guzikova, L., & Lukevich, I. (2018). ILLICIT CAPITAL FLOW IN CONTEMPORARY ECONOMIES’ DEVELOPMENT. The EUrASEANs: Journal on Global Socio-Economic Dynamics, (1(8), 29-39. https://doi.org/10.35678/2539-5645.1(8).2018.29-39