Capital Flight//Traade Balance//FPI(Foreign Portofolio Invesment)//FDI(Foreign Direct Invesment//
1. What causes Capital Flight to happen? Before discussing Capital Flight, what is actually meant by Capital Flight. So far there has been no theory that has been agreed upon by experts, but from all the theories and definitions of Capital Flight that have been conveyed by experts, the point is the transfer of large amounts of money belonging to a country which is entered into other countries for the purpose of investment, seeking greater and more profitable profits for the country's economy and avoiding losses caused by irresponsible parties. In addition, another factor that can affect a country's capital flight is the deterioration of the economy and politics in the country of origin. The following are some definitions of Capital Flight from experts: 1. Cuddington (1986) defines capital flight as a short-term outflow of capital, both recorded and unrecorded, which is speculative by the non-bank sector. 2. Beja (2007) defines capital flight as an outflow of private ...