Capital Outflow from the Russian Economy: Applying a Factor Analysis

Abstract

The primary goal of this article is to investigate and compare the impact of economic and non-economic factors on the capital outflows from Russia. Many recent studies in Russia have focused on studying the impact of economic factors on capital outflow. However, few studies in Russia evaluate and explain the impact of non-economic factors on the volume of capital outflow. Therefore, the impact of the non-economic factors (for example, geopolitical or social) on capital flow is not fully understood. Our hypothesis is that some of them may have significantly affected this outflow. We define the main factors and evaluate their impact applying the factor analysis in our research. Our main result is that non-economic factors had an impact on the volume of capital outflow at the end of 2014.