Projects

Illicit capital flows and external macroeconomic imbalances

Ing. Mária Širaňová, MA., PhD.

Members of project
Ing. Boris Fišera, PhD., Ing. David Hojdan, Ing. Timotej Klepanec, doc. Ing. Brian König, PhD., prof. Ing. Štefan Lyócsa, PhD., Prof. Dr. Ing. Menbere Workie Tiruneh, PhD.

• Basic informations
• Characteristics

• Duration of the project: 01/2021 - 12/2023
  ID number: VEGA 2/0101/21

   

• The main objective of this project is to create a comprehensive framework for analysing the impact of illicit capital flows on creation of external imbalances as well as the subsequent empirical application of this framework on the European data. Despite the growing importance of illicit capital flows (1.2 percent of world GDP annualy, 8 percent of net foreign wealth), the scientific literature still lacks a comprehensive framework binding the illicit capital flows with macroeconomic imbalances. The scientific approach is based on stock-flow adjustment model and integrates Lane and Milessi-Ferretti (2014) model with the intertemporal approach to current account (Bajo-Rubio et al., 2014). From the economic policy point of view, the outcomes achieved will represent an important input into the discussion on the sustainability of the development of external debt and the current account balance of European countries, for example in the context of the Macroeconomic Imbalance Procedure at the EU level.