Nonlinear Threshold Effects of Institutional Quality on Capital Flight

Over the years, capital flight is a major concern for countries where institutional quality severely deficient. Almost all literature emphasized role of on development. However, possible question still remains unsettled what would be optimum or threshold level that create milieu least flight. The purpose this study to find value indicators and its impact Bangladesh. Using ICRG WGI governance data over period 1989 2016, nonlinear regression proved up certain quality, interest rate differential reduces while economic growth stimulates net (NCF) Additionally, threshold, corruption lower NCF beyond no effect exists. none those independent variables affects whenever government stability considered.