Beja, Edsel Jr. (2006): Capital Flight and the Hollowing Out of the Philippine Economy in the Neoliberal Regime. Published in: Kasarinlan , Vol. 1, No. 21 (May 2006): pp. 55-74.
Download (171kB) | Preview
Capital flight is the movement of capital from a resource-scarce developing country to avoid social controls, and measured as net unrecorded capital outflow. Capital flight from the Philippines was $16 billion in the 1970s, $36 billion in the 1980s, and $43 billion in the 1990s. Indeed these figures are significant amounts of lost resources that could have been utilized in the country to generate additional output and jobs. Capital flight from the Philippines followed a revolving door process – that is, capital inflows were used to finance the capital outflows. This process became more pronounced with financial liberalization in the 1990s. With these results, we argue that capital flight resulted in the hollowing out of the Philippine economy and, more important, neoliberal policies underpinned the process.
|Item Type:||MPRA Paper|
|Institution:||Ateneo de Manila University|
|Original Title:||Capital Flight and the Hollowing Out of the Philippine Economy in the Neoliberal Regime|
|Keywords:||Capital flight; external debt; revolving door; Philippines|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F20 - General
B - History of Economic Thought, Methodology, and Heterodox Approaches > B5 - Current Heterodox Approaches > B50 - General
|Depositing User:||Edsel Beja, Jr.|
|Date Deposited:||12 Sep 2007|
|Last Modified:||25 Feb 2016 00:32|
Beja Jr., Edsel. 2005. Capital Flight: Measures and Meanings. In Capital Flight and Capital Controls in Developing Countries, ed. Gerald Epstein, Northampton, MA: Edward Elgar.
Beja Jr., Edsel, Pokpong Junvith, and Jared Ragusett. 2005. Capital Flight from Thailand: 1980 to 2000. In Capital Flight and Capital Controls in Developing Countries, ed. Gerald Epstein, Northampton, MA: Edward Elgar.
Bello, Walden. 2004. The Anti-Development State: The Political Economy of Permanent Crisis in the Philippines. Diliman, Philippines: University of the Philippines Press.
Bowles, Samuel and Herbert Gintis. 1988. Contested Exchange: Political Economy and Modern Economic Theory. American Economic Review 78(2): 145-150.
Boyce, James K. 1992. The Revolving Door? External Debt and Capital Flight: Philippine Case Study, World Development 20(3): 335-349.
Boyce, James K. 1993. The Philippines: Political Economy of Growth and Impoverishment in the Marcos Era. Manila, Philippines: Ateneo de Manila University Press.
Boyce, James K. and Lyuba Zarsky. 1988. Capital Flight from the Philippines, 1962-1986. Journal of Philippine Development 15(2): 191-222.
Caprio, Gerald, Izak Atiyas, and James Hanson.1994. Financial Reform. Theory and Practice. Cambridge: Cambridge University Press.
Caprio, Gerald, Patrick Honohan, and Joseph Stiglitz 2001. Financial Liberalization. Cambridge: Cambridge University Press
Chang, Ha-Joon. 2003. Globalization, Economic Development and the Role of the State. London, UK: Zed Books.
Chang, Ha-Joon and Ilene Grabel. 2004. Reclaiming Development: An Economic Policy Handbook for Activists and Policy Makers. London, UK: Anthem Press.
Chang, Ha-Joon and Robert Rowthorn. 1995. The Role of the State in Economic Change. Oxford, UK: Oxford University Press.
Chang, Ha-Joon, Gabriel Palma, and Hugh Whittaker 2001. Financial Liberalization and the East Asian Crisis. New York Palgrave.
Crotty, James and Gerald Epstein. 1996. In Defense of Capital Controls. In The Socialist Register 1996, ed. Leo Panitch. London, UK: Merlin Press.
Crotty, James and Gerald Epstein. 1999. In Defense of Capital Controls in Light of the Asian Financial Crisis. Journal of Economic Issues 33(2): 427-433.
Demir, Firat. 2004. A Failure Story: Politics and Financial Liberalization in Turkey, Revisiting the Revolving Door Hypothesis. World Development 32(5): 851-869
Eatwell, John. 1997. International Financial Liberalization: The Impact on World Development. Discussion Paper No. 12, United Nations Development Programme.
Epstein, Gerald, Ilene Grabel, and Jomo K.S. 2003. Capital Management Techniques in Developing Countries. Working Paper No. 56, Political Economy Research Institute.
Gibson, Heather and Euclid Tskalotos 1989. Capital Flight and Financial Liberalization: A Study of Five European Countries. University of Kent Studies in Economics 90: 1-45
Jomo K.S. 1998. Tigers in Trouble. Financial Governance, Liberalization and Crises in East Asia, London: Zed Books, Ltd.
Jomo K.S. 2003. Southeast Asia’s Paper Tigers? From Miracle to Debacle and Beyond. London, UK: Routledge.
Lamberte, Mario, Joseph Lim, Rob Vos, Josef Yap, Elizabeth Tan, and Maria Zingapan. 1992. Philippine External Finance, Domestic Resource Mobilization and Development in the 1970s and 1980s. Makati, Philippines: Philippine Institute of Development Studies.
Lensink, Robert, Niels Hermes, and Victor Murinde 1998. The Effect of Financial Liberalization on Capital Flight in African Economies. World Development 26(7): 1349-1268
Lim, Joseph Anthony. 2004. Macroeconomic Implications of the Southeast Asian Crises. In After the Storm: Crisis, Recovery and Sustaining Development in Four Asian Economies, ed. Jomo K.S. Singapore: Singapore University Press.
McKinnon, Ronald. 1991. The Order of Economic Liberalization. Financial Control in the Transition to a Market Economy. Baltimore: Johns Hopkins University Press
McKinnon, Ronald and Huw Pill. 1996. Credible Economic Liberalizations and Overborrowing. American Economic Review 80(2): 189-193.
McKinnon, Ronald and Huw Pill. 1998. International Overborrowing: A Decomposition of Credit and Currency Risk. World Development 26(7): 1267-1282.
Montiel, Peter and Carmen Reinhart. 1999. “Do Capital Controls and Macroeconomic Policies Influence the Volume and Composition of Capital Flows? Evidence from the 1990s. Journal of International Money and Finance 18: 619-635.
Nembhard, Jessica. 1996. Capital Control, Financial Regulation, and Industrial Policy in Korea and Brazil. Wesport, CT: Praeger.
Palma, Gabriel. 2004. The Three Routes to Financial Crises: Chile, Mexico and Argentina , Brazil ; and Korea, Malaysia and Thailand . In Rethinking Development Economics, ed. Ha-Joon Chang. London, UK: Anthem Press.
Pincus, Jonathan and Rizal Ramli. 1988. Indonesia: From Showcase to Basketcase. Cambridge Journal of Economics 22(6): 723-734.
Pincus, Jonathan and Rizal Ramli. 2005. Deepening or Hollowing Out: Financial Liberalization, Accumulation and Indonesia’s Economic Crisis. In After the Storm: Crisis, Recovery and Sustaining Development in Four Asian Economies, ed. Jomo K.S. Singapore: Singapore University Press.
Pritchett, Lant. 2003. A Toy Collection, A Socialist Star, and A Democratic Dud? in In Search of Prosperity. Analytic Narratives on Economic Growth, ed. Dani Rodrik, Princeton, NJ: Princeton University Press.
Vogel, Stephen. 1996. Freer Markets, More Rules: Regulatory Reform in Advanced Industrial Countries, Ithaca, NY: Cornell University Press.
Vos, Rob. 1992. Private Foreign Assets Accumulation, Not Just Capital Flight: Evidence from the Philippines. Journal of Development Studies 28(3): 500-537.
Vos, Rob and Josef Yap. 1996. The Philippine Economy: East Asia’s Stray Cat. New York, NY: St. Martins.
Williamson, John and Molly Mahar.1998. A Survey of Financial Liberalization. Princeton Essays in International Finance No. 211, Princeton University