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This paper investigates whether stricter water pollution regulation induces capital flight toward relatively less-regulated regions in China. Exploiting a unique firm dataset, we construct an interregional investment network at the city pair level and examine the impact of a typical water pollution regulation as a natural experiment on interregional investment. We find that water pollution regulation does not significantly affect interregional investment flows. However, when considering geographical distance, there is substantial economic significance observed for close-range capital flight. These results suggest that the investment transfer of polluting industries is more likely to occur in local areas due to relatively small frictions in capital flow between geographically adjacent regions. Additionally, our findings indicate that strict water pollution regulation has a greater impact on private firms and foreign firms. Our study sheds light on a critical but always overlooked role of capital flow friction in pollution havens hypothesis and provides new evidence on the domestic pollution havens with geographical restrictions. [ABSTRACT FROM AUTHOR]

The system of cooperative governance in the democratic South African dispensation was constitutionally mandated and institutionalised to improve intergovernmental relations that can streamline effective performance, implementation, and monitoring of government programmes to improve service delivery for citizens. However, despite numerous efforts and pleas by the Auditor-General of South Africa to responsible oversight structures like provincial governments and the Standing Committee on Public Accounts to curb financial malfeasance, corruption and lack of adequate and proper financial management skills, these pleas have fallen on deaf ears thus undermining cooperative and good governance mechanisms and systems. A practice of cadre deployment rather than meritocracy has become inherent when appointing and selecting local government officials and strategic thinkers who can be tasked to conceptualise new ideas of governance that can be associated with accountability and other good governance measures. The main question that this paper seeks to investigate is what causes poor governance and management performance in local municipalities under the African National Congress? The six themes generated from the analysis of literature reviews and strategic documents are meritocracy versus cadre deployment, strategic collaboration, human capital development, performance efficiency and efficacy, corruption and nepotism, and capital flight. Thus, to ensure best practices, parliamentary oversight structures and responsible departments, like the National Treasury, should build checks and balances in their institutional mechanisms that strive to streamline good cooperative governance practices and accountability measures as per constitutional prescripts to ensure that basic services are effectively and sufficiently rendered across cooperative governance spheres. Furthermore, appropriate oversight measures driven by political will from political superiors in the governing party should be adopted, inculcated, and institutionalised in the cooperative governance system of South Africa to punish serial offenders amongst accounting officers in local municipalities. This study is significant because it outlines effective oversight mechanisms that streamline good governance within the cooperative governance framework in the developing world with specific reference to South Africa.

Purpose – This study aims to investigate the impact of remittance costs on trade-based money laundering (TBML) and provide insights into the relationship between remittance costs and TBML, particularly focusing on import over-invoicing and low-income trade partners. Design/methodology/approach – Utilizing an extended gravity model for TBML, bilateral data from Vietnam spanning 2011 to 2019 are analyzed to examine the correlation between remittance costs and TBML. Findings – The study reveals a positive association between remittance costs and TBML, highlighting the significance of reducing remittance costs to curb TBML. Research limitations/implications – The research is limited by the availability of data and focuses solely on Vietnam, implying potential variations in other contexts. Practical implications – Policymakers should consider reducing remittance costs as a strategy to combat TBML effectively. Social implications – Lowering remittance costs could contribute to the prevention of illicit financial activities, fostering economic stability and social development. Originality/value – This study provides novel insights into the relationship between remittance costs and TBML, offering valuable implications for policy formulation and anti-money laundering (ML) efforts.

Foreign capital and buyers are often blamed for pushing up housing prices and reducing the supply of affordable housing in Australia. We examine this issue by assessing the impact of Chinese macroprudential policies, such as the limitation on currency transactions (LCT), on Sydney housing prices. Using propensity score matching and difference-in-differences techniques, we find that the LCT policy issued by the People's Bank of China in 2017 had a strongly negative impact (about −3%) on housing prices in suburbs with larger concentrations of Chinese residents, which are measured by multiple cutoff points—hereafter, Chinese suburbs—in Sydney, Australia. The results are consistent with home bias abroad, which implies that Chinese capital for residential real estate overseas most likely flows to predominately Chinese neighbourhoods in the destination city. We also find evidence that the relationship between this Chinese macroprudential policy and overseas housing prices is more direct to Chinese suburbs, with little impact on housing prices outside Chinese neighbourhoods within the studied period. [ABSTRACT FROM AUTHOR]

The system of cooperative governance in the democratic South African dispensation was constitutionally mandated and institutionalised to improve intergovernmental relations that can streamline effective performance, implementation, and monitoring of government programmes to improve service delivery for citizens. However, despite numerous efforts and pleas by the Auditor-General of South Africa to responsible oversight structures like provincial governments and the Standing Committee on Public Accounts to curb financial malfeasance, corruption and lack of adequate and proper financial management skills, these pleas have fallen on deaf ears thus undermining cooperative and good governance mechanisms and systems. A practice of cadre deployment rather than meritocracy has become inherent when appointing and selecting local government officials and strategic thinkers who can be tasked to conceptualise new ideas of governance that can be associated with accountability and other good governance measures. The main question that this paper seeks to investigate is what causes poor governance and management performance in local municipalities under the African National Congress? The six themes generated from the analysis of literature reviews and strategic documents are meritocracy versus cadre deployment, strategic collaboration, human capital development, performance efficiency and efficacy, corruption and nepotism, and capital flight. Thus, to ensure best practices, parliamentary oversight structures and responsible departments, like the National Treasury, should build checks and balances in their institutional mechanisms that strive to streamline good cooperative governance practices and accountability measures as per constitutional prescripts to ensure that basic services are effectively and sufficiently rendered across cooperative governance spheres. Furthermore, appropriate oversight measures driven by political will from political superiors in the governing party should be adopted, inculcated, and institutionalised in the cooperative governance system of South Africa to punish serial offenders amongst accounting officers in local municipalities. This study is significant because it outlines effective oversight mechanisms that streamline good governance within the cooperative governance framework in the developing world with specific reference to South Africa. [ABSTRACT FROM AUTHOR]

This study explores the heterogeneous influence of capital flight and economic policy uncertainty (EPU) on domestic investment in Nigeria. The study utilizes the novel quantile-based nonlinear autoregressive distributed lag (QNARDL) estimation procedure to estimate both the sign-based and the size-based asymmetric influence of capital flight and EPU on domestic investment. The investigation's outcomes are as follows: First, capital flight influences domestic investment negatively, predominantly in the upper quantiles. Second, it demonstrates that country-specific EPU and its global-based variant significantly negatively affect a country's investment. Third, the study finds that domestic and world policy uncertainty aggravates the suppressing effect of capital flight on domestic investment. Fourth, a robust unidirectional causality from EPU (indigenous and world) to capital flight implies that policy uncertainty enervates the business climate and creates fear of losses among investors, affecting investment negatively. Fifth, the study indicates an increasing rate of devastating influence of EPU on domestic investment, with more pernicious effects at the upper quantile. The implication is that the devastating effect of EPU (whether country-based or world-based) on domestic investment is highly sensitive to its size. The policy recommendations from the main discoveries have been suggested. [ABSTRACT FROM AUTHOR]

This paper proposes a novel approach to quantitatively estimating the magnitude of China's capital flight through the travel channel from 2014 to 2019. We set 2014 as the break point to account for a change in the methodology of compiling outbound travel expenditure and adopt a counterfactual method to calculate the magnitude of China's capital flight through the travel channel. Our results show that, from 2014 to 2019, China's capital flight through the travel channel reached a total of US$602 billion, with a quarterly average of about US$25 billion, accounting for about 40% of the total Chinese outbound travel expenditure. We further construct a gravity model using data from the United Nations' World Tourism Organisation to empirically show that China's capital flight tends to flow to economies with a high degree of financial development and often appears when the RMB depreciates against the US dollar. [ABSTRACT FROM AUTHOR]

In this paper, we analyse the effect of fiscal policy volatility on capital flight. Based on a sample of 27 African countries over the period 1970–2018 and using System generalised method (GMM) of moments, we show that fiscal policy volatility increases capital flight. Specif‐ically, our baseline results indicate that an increase in fiscal policy volatility by 1% increases capital flight by 1.4%. In other words, an increase in fiscal policy volatility by 100% increases capital flight by 140% or by 40% above the increase in the cause, that is, fiscal policy volatility. These results are robust to additional control variables, alternative methods, samples, and specifications, and may vary with the initial level of capital flight. [ABSTRACT FROM AUTHOR]

This paper studies the dynamic relationship between the parallel and official exchange rates of Chinese Yuan (CNY) to U.S. Dollar (USD). Motivated by recent evidence about Bitcoin as a major channel for capital flight from China, we construct a parallel exchange rate implied by Bitcoin prices in the Chinese and U.S. crypto exchanges. While the dual exchange rates are cointegrated, adjustment to long-run equilibrium is non-linear and depends on policy changes and state of the markets. Results from our Markov Switching Vector Error Correction model suggest the parallel exchange rate responds one-to-one in the long-run with respect to an official exchange rate innovation. However, an unexpected change in the parallel rate is countered by an opposite and state-dependent response in the official exchange rate, suggesting active exchange policy interventions by the Chinese monetary authority. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to provide an empirical investigation into rising capital flight and the role of institutional quality to mitigate its effect on the real sector in sub-Saharan Africa (SSA). Design/methodology/approach: The study uses the system generalized method of moments and uses data spanning from 1989 to 2020 from 26 SSA countries. Findings: The findings show that capital flight has no direct impact on the real sector while institutional quality adversely impacted the agricultural and industrial sectors. The study also found that institutional quality is unable to mitigate the effect of capital flight on the industrial sector. Originality/value: This study investigates if institutional quality mitigates the impact of capital flight on the real sector proxied by industrial value-added and agriculture value-added. [ABSTRACT FROM AUTHOR]

This article examines the impact of tax revenue mobilization on capital flight in 30 African countries, focusing on the role of natural resources. Over the period 1998–2018, econometric analysis based on dynamic generalized method of moments suggests that tax revenue mobilization reduces capital flight in Africa. However, when countries have more natural or oil resources, the negative impact of tax revenues on capital flight weakens. Therefore, despite the importance of the benefits associated with natural resource wealth (in particular, oil wealth), the latter compromises the impact of tax revenue mobilization on stemming capital flight. Finally, greater responsibility in the management of natural resources and more transparent reporting by companies operating in this sector are needed.

This paper investigates the impact of capital flight on economic growth in Africa using 54 African countries from 2000 to 2021. The study employed the GMM and the dynamic panel threshold regression estimation techniques. GMM results revealed that capital flight negatively and significantly affects economic growth in Africa. The study also revealed that external debt repayment and outward foreign direct investment, proxies of capital flight, have a negative and significant effect on economic growth in Africa, except foreign portfolio investment outflow, which positively and insignificantly influences economic growth. Again, the dynamic panel threshold estimation results also revealed that capital flight negatively affects economic growth at all levels of capital flight in Africa. The study also revealed that all the proxies of capital flight, external debt repayments, foreign portfolio investment outflows, and outward foreign direct investment negatively and significantly affect economic growth above a certain threshold. However, external debt repayment has an insignificant negative effect on economic growth below the threshold in Africa. Based on the findings, African countries should implement stringent policies to curb capital flight and regulate external debt repayments and outward foreign direct investment to enhance economic growth. [ABSTRACT FROM AUTHOR]

Detroit's intertwined history of deindustrialization and racial segregation is often explored separately. In The Origins of the Urban Crises (1996), Thomas Sugrue examines post-WWII job losses and housing discrimination without elucidating why and how the city came to experience the abrupt flight of capital in that period. Conversely, Murray and Schwartz's Wrecked (2019) details the catalysts for Detroit's deindustrialization but neglects its impact on the African-American community. This paper aims to bridge these perspectives by utilizing various secondary sources and archival evidence to analyze how concurrent discrimination and economic decline have maintained the persistent segregation between Detroit and its suburbs. [ABSTRACT FROM AUTHOR]

The financial haemorrhaging of lower income countries in the form of capital flight is a leading cause of global economic inequality. On an annual basis, trillions of dollars bypass the already starved fiscal spaces of nations mired in poverty, making their way instead to lucrative offshore bank accounts governed by secrecy jurisdictions. The present article relates this phenomenon to the institutional architecture of the global financial system and provides causal evidence that structural adjustment programmes implemented at the behest of international financial organizations amplify such capital flight. In particular, by isolating exogenous variation in policy conditionalities through the use of instrumental variables, we find that trade liberalization, financial sector reforms and privatization measures mandated by the International Monetary Fund in developing contexts substantially increase financial outflows occurring via current and capital account transactions. Our findings thus document the contribution that structural adjustment makes to an underappreciated facet of contemporary global inequality. [ABSTRACT FROM AUTHOR]

We analyze the determinants of capital flight in three resource scarce MENA countries namely Egypt, Morocco, and Tunisia. Our methodology involves both the linear and nonlinear autoregressive distributed lag (ARDL) cointegration approaches, with a focus on asymmetric relationships between capital flight and the real exchange rate, to distinguish the impact of real appreciation and depreciation of domestic currency on capital flight. The results based on nonlinear ARDL approach using annual data between 1977 and 2019 indicate that in Egypt, financial openness is negatively related with capital flight, while real depreciation seems to increase it in the long run. Our findings also reveal that the real GDP growth rate, institutional quality as well as inflation are important factors affecting capital flight in Morocco, whereas financial openness and the real exchange rate influence capital flight significantly in Tunisia. [ABSTRACT FROM AUTHOR]

We follow Forbes and Warnock (2012) to define four types of large international capital flows, namely, capital flight and capital retrenchment of domestic residents, and capital surge and sudden stop of foreigners. Using data from 56 countries from 1985 to 2017, we find that only the sudden stop would likely increase the probability of a currency crisis. Then, based on the significant results of the sudden stops, we further investigate which type of large capital inflows combined with the sudden stop would increase the probability of a currency crisis. We argue that the large capital inflows, including capital surges and capital retrenchments, are driven by different entities, which may affect the impact of sudden stop on currency crises. We find that a capital surge followed by a sudden stop would increase the probability of a currency crisis, but the capital retrenchment followed by a sudden stop does not. [ABSTRACT FROM AUTHOR]

The purpose of this study is to consider the phenomenon of ‘capital flight’ as a threat to the economic security of the country. This goal is achieved using general scientific methods, including analysis and synthesis, induction and deduction, abstraction, systematisation, and comparison. The study highlights the differences between the concepts of ‘capital outflow’ and ‘capital flight’, assesses the scale of capital flight and outflow, analyses the causes of these phenomena, and explicates the goals of capital flight. One of the causes of capital flight, namely tax evasion, is specified. The findings underscore the main directions of the impact of capital flight on the economic security of the country, and key measures to combat capital flight are proposed.

The study assesses the effect of capital flight in the nexus between foreign aid and renewable energy consumption in 20 countries in sub-Saharan Africa using data for the period 1996 to 2018. The empirical technique employed is interactive quantile regressions, and the following findings are established. Foreign aid increases renewable energy consumption, while capital flight dampens the favorable effect of foreign aid on renewable energy consumption. The underlying significance and corresponding mitigating effect are exclusively relevant to the bottom (i.e., 10th) quantile of the conditional distribution of renewable energy consumption. The findings are robust to simultaneity and unobserved heterogeneity. Policy implications are discussed. JEL Classification: H10; Q20; Q30; O11; O55 [ABSTRACT FROM AUTHOR]

Motivated by the momentous concerns over the development challenges associated with capital flight and the persistent lack of funding to improve healthcare in Africa, this study investigates the effects of capital flight on public health outcomes. Exploiting regional variations in capital flight stemming from differences in exchange rate regimes across CFA (Communaute Financiere Africaine) zone countries and non‐CFA zone countries, I construct a shift‐share instrumental variable to infer the causal effect of capital flight on health outcomes in Africa. The results show some headways toward considering capital flight as a potential threat to achieving better public health outcomes. This finding is robust to various robustness tests, including pre‐existing trend analysis, falsification tests, heterogeneity analysis, and alternative instrumental variable specifications. The study demonstrates that government spending on health and living standards are the main routes through which capital flight influences public health outcomes. [ABSTRACT FROM AUTHOR]

The economic and social consequences of capital flight from developing and underdeveloped countries indicate the importance of this phenomenon. Capital flight causes economic and political uncertainty and can be an obstacle to poverty reduction, economic growth, and domestic and international investments. Also, capital outflow and public and social expenses will decrease, especially in the education, water, health, and sanitation sectors, and economic and social inequalities will become more visible. Also with capital outflow, public and social expenses will decrease, especially in the education, water, health, and sanitation sectors, and economic and social inequalities will become more visible. Knowing more about this phenomenon, such a study can help the literature on this topic in analyzing the determining factors of capital flight from developing countries. In this research, using the Erbe-World Bank method, the amount of capital flight was measured for a sample of 24 developing countries during the period 2000-2021. Then, to investigate and analyze the determinants of capital flight using the generalized method of moments (GMM), the effect of institutional and governance factors and economic factors on capital flight was investigated. The results of the research show that inflation, sanctions, and economic growth fluctuations have positive and significant effects, and the corruption control index and the economic freedom index have negative and significant effects on capital outflow. As a result inflation, sanctions, and economic growth volatility accelerate capital outflow, and improvement in institutional quality and governance reduces capital outflow from developing countries. Countries that are trying to prevent the outflow of capital should review their governance structures and take steps to eliminate internal corruption with greater institutional transparency.

The article considers the problems of capital flight from Russia in current conditions and the related problems of financing budget expenditures. The difference between capital export and capital flight, which occurs in conditions of extremely high risks or unfavorable investment climate, is substantiated. The balance of payments of Russia in 2022 is analyzed, and it is substantiated that in the current situation capital flows are largely capital flight from political and economic risks. The author estimates the size of capital flight from Russia in 2022 (approximately $232 billion), and concludes that the mandatory sale of foreign exchange earnings in modern conditions can be replaced by more flexible control measures. Further, the paper analyzes a set of complex problems of financing the federal budget expenditures of Russia in the current conditions. Three possible mechanisms of financing the budget deficit (or additional expenditures) are considered: at the expense of new public debt, at the expense of the National Welfare Fund and sale of state assets, as well as at the expense of new emergency taxes. It is concluded that attraction of new sources for government borrowing is practically impossible without a significant increase in interest expenditures. At the end of the paper, for the recovery of the Russian economy, there is a proposal to introduce a new flexible tax on the export of capital, which can create incentives for investment in the Russian economy and solve the problems of financing federal budget expenditures in modern conditions.

Purpose: This study aims to estimate the magnitude of capital flight from Pakistan. Furthermore, it analyzes the impact of capital flight on the economic growth of Pakistan in the short and long run. Design/methodology/approach: This study uses the World Bank's residual method to estimate the magnitude of capital flight from Pakistan during 1976–2018. This study used the autoregressive distributed lag (ARDL) approach to estimate the effect of capital flight on the economic growth of Pakistan. Findings: ARDL results revealed a negative and statistically significant relationship between different measures of capital flight and economic growth in the long run. However, this relationship is not statistically significant in the short run. After correction for external borrowing and trade misinvoicing, this study finds that the total capital flight from Pakistan during the study period amounted to US$333bn (in 2010 dollars). With accrued interest earnings, the stock of capital amounted to US$124,768bn, significantly higher than the accumulated stock of long-term debt, which amounted to US$1,231bn during the study period indicating that Pakistan faces a severe challenge of capital flight. Originality/value: This study calculates the magnitude of capital flight from Pakistan for the first time. Furthermore, this study also calculates the magnitude of capital flight for military and democratic regimes. This study suggests many policy proposals to deal with the challenge of capital flight. [ABSTRACT FROM AUTHOR]

How free should the movement of people be compared to the movement of capital? Unlike those who defend a presumption in favour of symmetrical treatment, I suggest that the presumption in favour of free human movement is much stronger than the same presumption in favour of the free movement of capital. Against those who claim that capital ought to be freer to move than people, I argue that states have much stronger reasons, both of distributive justice and cultural integrity, to constrain capital movement than they have to restrict human movement. Further, the case for restricting skilled workers' right to exit their country in the case of brain drain is much weaker than the parallel case for restricting investors' right to exit from a country that faces a threat of capital flight. Overall, my argument supports the 'reversed asymmetry thesis': People should be much freer to move than capital. [ABSTRACT FROM AUTHOR]

The economic and social consequences of capital flight from developing and underdeveloped countries indicate the importance of this phenomenon. Capital flight causes economic and political uncertainty and can be an obstacle to poverty reduction, economic growth, and domestic and international investments. Also, capital outflow and public and social expenses will decrease, especially in the education, water, health, and sanitation sectors, and economic and social inequalities will become more visible. Also with capital outflow, public and social expenses will decrease, especially in the education, water, health, and sanitation sectors, and economic and social inequalities will become more visible. Knowing more about this phenomenon, such a study can help the literature on this topic in analyzing the determining factors of capital flight from developing countries. In this research, using the Erbe-World Bank method, the amount of capital flight was measured for a sample of 24 developing countries during the period 2000-2021. Then, to investigate and analyze the determinants of capital flight using the generalized method of moments (GMM), the effect of institutional and governance factors and economic factors on capital flight was investigated. The results of the research show that inflation, sanctions, and economic growth fluctuations have positive and significant effect, and the corruption control index and the economic freedom index have negative and significant effects on capital outflow. As a result inflation, sanctions, and economic growth volatility accelerate capital outflow, and improvement in institutional quality and governance reduces capital outflow from developing countries. Countries that are trying to prevent the outflow of capital should review their governance structures and take steps to eliminate internal corruption with greater institutional transparency. [ABSTRACT FROM AUTHOR]

The purpose of this article is to offer an alternative perspective to worsening wealth disparity in India. It does so by critically applying the framework of uneven and combined development in a novel way. It develops two analytical constructs based on internal and external forces that collectively contribute to increasing wealth inequality. The internal force is a closed loop in which the state privileges rent-seeking activities as a response to uneven development in the first place. The external force comprises open borders that not only facilitate wealth and capital flight, which is linked to rent-seeking activities but also deprives the economy of critical resources for development. Together, the specific institutional arrangements associated with the closed loop and the siphoning off of wealth under open borders in the form of capital flight to the global economy exacerbate wealth inequality. [ABSTRACT FROM AUTHOR]

This article examines the impact of tax revenue mobilization on capital flight in 30 African countries, focusing on the role of natural resources. Over the period 1998-2018, the econometric analysis is based on the dynamic generalized method of moments (GMM) and the main results of the study suggest that tax revenue mobilization reduces capital flight in Africa. However, when countries have more natural or oil resources, the negative impact of tax revenues on capital flight weakens. So, despite the importance of the benefits associated with natural resource wealth or, in particular, oil wealth, their presence compromises the impact of tax revenue mobilization on stemming capital flight. Finally, greater responsibility in the management of natural resources and more transparent reporting by companies operating in this sector are needed. [ABSTRACT FROM AUTHOR]

Purpose: Viewing the domestic downside risk as a "pushing" factor for outward foreign direct investment (OFDI), this study aims to examine the surge in Chinese cross-border acquisitions (CBAs) between 2008 and 2017, a unique window when private firms in China were allowed to conduct CBAs. Design/methodology/approach: This study examines the effect of down-side risk on cross-border acquisition performance by using the sample of Chinese A-share listed companies from 2008 to 2017. Specifically, this study considers three kinds of systemic risk, systematic risk and idiosyncratic risk, and respectively examines their impact on CBAs activities; this study also investigates their subsequent results after CBAs activities. The contingency effect of state ownership on the above relationship is also discussed. Findings: The findings reveal that pre-CBA systemic risk explains the volume of CBA activities; CBAs are followed by a reduction in systemic risk; the interactions between systemic risk and CBAs decrease with the level of state ownership; and the above results do not hold for traditional risk measures (i.e. systematic risk and idiosyncratic risk). Originality/value: This study contributes to the literature by revealing the role of systemic risk as a "pushing" factor in the context of OFDI and suggesting an alternative explanation for CBAs from China: Chinese firms (especially private firms) took advantage of the rare opportunity between 2008 and 2017 given by the government to transfer assets overseas through CBA. [ABSTRACT FROM AUTHOR]

This paper contributes to the literature on capital flight by investigating the relationship between kidnapping rate and capital flight in developing countries. Numerous empirical studies exist on the determinants of capital flight but, surprisingly, none of them have investigated the empirical link between kidnapping and capital flight. To fill this existing void in the literature, this paper utilised a sample of 67 developing countries for the period 2003–2017. Estimates of the GMM technique show that kidnapping rate has a positive and significant impact on capital flight. However, estimations of the marginal differences show that this significant effect remained consistent only in the sample of 'fragile' developing countries. The results remained consistent to alternative measures of capital flight. [ABSTRACT FROM AUTHOR]

This article will argue that the development of Chinese financial technology, or ‘fintech’, over the past decade, is primarily motivated to safeguard Chinese monetary sovereignty, which is threatened by the proliferation of non-state cryptocurrencies, like Bitcoin, that have exacerbated the problem of capital flight, not only for China, but for other non-Western countries that have lost fortunes to outflows seeking access Western financial assets. This raises the question, how is China responding to the emergence of cryptocurrencies as a development that reinforces US financial hegemony? The answer to be explored by this paper is by embracing elements of cryptocurrency technology in the form of digital payment systems and blockchain technology. These Chinese fintech developments pose a serious unprecedented challenge to the financial hegemony of the US insofar as it compels other countries to copy the Chinese response because they desire the tools to limit illegal outflows of capital that have historically propped up the US Dollar.

This study is carried out to identify, evaluate and rank the causes and factors of capital flight in Iran, derived from ideas of a group of experts in the capital and investment field, including managers, scholars, and other elites. The present research is applied in terms of purpose and duration of data collection, considered a descriptive-survey. After reviewing the literature, a set of ten economic causes for the capital flight were identified. After the collected data's fuzzy expression, its de-fuzzy numbers are considered the DEMATEL matrix's direct effect. Using this technique, the indirect effects matrix and total effects were calculated. To evaluate each factor's position, based on Interpretation Structural Modeling (ISM), the MICMAC chart was derived, and the results indicated that none of the elements were recognized as dependent variables. Among these, "problems of transferring funds and opening an account in the international framework" and "the dual exchange rate system in the country" are independent variables with low dependence but high penetration. Two autonomous elements and the six linkages are also identified. Finally, through Analytical Network Process (ANP) method, all economic causes of the country's capital flight were ranked. The results show that the highest priority of capital flight in Iran is "low investment return in Iran, and on the contrary, high-profit incentives for investment," "high financial and economic risks, inappropriate risk hedging," "Fundraising obstacles (including fixed interest rates, quotations, failure to provide allocated financial credits)," "problems to establish ideas and business plans, and complex processes of setting up a business" and "low degree of economic openness and problems to export and import" respectively. Finally, strategies to address the capital flight were addressed, including creating a secure and stable economic space and adopting valid macroeconomic policies with appropriate interest rates.

The article offers the first comprehensive account of relations between Germany and Switzerland in the years 1919 to 1931 based on archival sources from both countries. Emphasising the interaction between finance and diplomacy, it provides new insights into the role played by the Swiss offshore centre for the German Reich after the First World War. During the inflationist period of 1919‒1923, as well as in the crisis of 1929‒1931, Switzerland, like the Netherlands, welcomed a huge amount of wealth from Germany while at the same time becoming an important creditor of the Reich. These developments had a significant impact on German internal and foreign policies at the time. Nevertheless, the article article argues that, despite the intensity of financial flows, Switzerland pursued a diplomatic course that was more plurilateral than the Netherlands. Even during the second part of the 1920s, when Swiss capital was placed on the German market in massive dimensions, there was no German orientation in Swiss foreign policy similar to what had happened in the years before the First World War. Switzerland’s foreign relations became more neutral during the 1920s. This article consequently proposes a nuanced perspective on the role of the small European countries in German foreign policy, highlighting the need to differentiate between them in spite of their common features and to consider, in a non-deterministic way, the interaction between finance and diplomacy.