TY - JOUR
T1 - Thailand capital flight through trade with the US during times of political and economic instability
AU - Chunhachinda, Pornchai
AU - de Boyrie, Maria E.
AU - Pak, Simon J.
PY - 2008
Y1 - 2008
N2 - This paper investigates capital flight from Thailand to the US through trade misinvoicing during the period from 1990 to 2005. The evidence indicates that capital flight from Thailand to the US, valued over US$16,189 million, had been done through under-invoicing exports to the US rather than over-invoicing imports from the US. The major incentive for the movement of capital is investment, followed by political events in Thailand, and the most significant determinants of capital flight are the US T-bill rate, the deposit rate in Thailand, and the degree of overvaluation of the Thai Baht. Interestingly, the 1997 Asian economic crisis did not play a significant role in the capital movement through trade.
AB - This paper investigates capital flight from Thailand to the US through trade misinvoicing during the period from 1990 to 2005. The evidence indicates that capital flight from Thailand to the US, valued over US$16,189 million, had been done through under-invoicing exports to the US rather than over-invoicing imports from the US. The major incentive for the movement of capital is investment, followed by political events in Thailand, and the most significant determinants of capital flight are the US T-bill rate, the deposit rate in Thailand, and the degree of overvaluation of the Thai Baht. Interestingly, the 1997 Asian economic crisis did not play a significant role in the capital movement through trade.
UR - http://www.scopus.com/inward/record.url?scp=53249111481&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=53249111481&partnerID=8YFLogxK
U2 - 10.1142/S0219091508001404
DO - 10.1142/S0219091508001404
M3 - Article
AN - SCOPUS:53249111481
SN - 0219-0915
VL - 11
SP - 363
EP - 387
JO - Review of Pacific Basin Financial Markets and Policies
JF - Review of Pacific Basin Financial Markets and Policies
IS - 3
ER -