01128nam a22001217a 4500 Dooley, Michael P Kletzer, Kenneth M Capital Flight, External Debt and Domestic Policies San Francisco: Economic Review, Federal Reserve Bank of San Francisco, 1994. It is now well documented that capital flight has been a dominant feature of capital movements between developing and industrial countries. Since 1988 reductions in the stock of flight capital more than account for private capital flows to emerging markets. This suggests that what appears to be a diversification of portfolios of residents of developed countries may be a restoration of 'home bias' in the portfolios of residents of developing countries. The authors show that changes in the stock of capital flight can increase or decrease welfare depending on the structure of distortionary taxes and subsidies on capital income and the effects of capital flight on the tax base. Capital flight, Debt, Capital inflow iffoadatabase.trustafrica.org/iff/Capita flight external debt policy.pdf CF 96 96