Preface to: Thailand Capital Flight Through Trade with the U.S. During Times of Political and Economical Instability

Pacific Basin Financial Markets and Policies, Vol. 11, No. 3, pp. 363-387, 2008

Posted: 19 Oct 2009

See all articles by Pornchai Chunhachinda

Pornchai Chunhachinda

Thammasat University

Maria E. de Boyrie

New Mexico State University

Simon J. Pak

Pennsylvania State University - Management Division

Date Written: September 1, 2008

Abstract

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.

Keywords: Capital flight, trade misinvoicing, political, economic instability

Suggested Citation

Chunhachinda, Pornchai and de Boyrie, Maria E. and Pak, Simon J., Preface to: Thailand Capital Flight Through Trade with the U.S. During Times of Political and Economical Instability (September 1, 2008). Pacific Basin Financial Markets and Policies, Vol. 11, No. 3, pp. 363-387, 2008 , Available at SSRN: https://ssrn.com/abstract=1490823

Pornchai Chunhachinda (Contact Author)

Thammasat University ( email )

Bangkok, 10200
Thailand

Maria E. De Boyrie

New Mexico State University ( email )

Las Cruces, NM 88003
United States
575-646-3252 (Phone)
575-646-2820 (Fax)

Simon J. Pak

Pennsylvania State University - Management Division ( email )

30 East Swedesford Road
Malvern, PA 19355-1443
United States

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