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 Sven Steinkamp

 



Picture of Sven Steinkamp sitting in the conference room

ORCID iD iconDr. Sven Steinkamp
Assistant Professor of Economics

Institute of Empirical Economic Research
Osnabrück University

Rolandstraße 8
D-49069 Osnabrück

Logo of Osnabrueck University (Universität Osnabrück)




Last change: August, 2020

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I am an Assistant Professor at the Institute of Empirical Economic Research at Osnabrück University in Germany.

My research adresses policy-relevant questions of International Economics with a regional focus on China and Europe.


Ongoing Research (click for abstract)

Development Aid and Illicit Capital Flight: Evidence from Nepal

While illicit capital flight is a major concern of policy makers in developing countries, there is only little research on the possible link between capital flight and development aid. In this paper, we address the issue for Nepal, a stereotypical financially-closed developing economy. Distinguishing features of our approach are the use of a narrowly defined proxy of capital flight based on trade-cost adjusted mirror trade statistics and the focus on the foreign-exchange cash component of development aid. We document a robust effect of aid on outward capital flight that is economically and statistically significant. The effect is identified following three strategies. First, we compare it to remittances, a counterexample of foreign-exchange inflows where the capital flight motivation is absent. Second, we compare it to broader aid definitions that include in-kind transfers. Third, we estimate IV regressions, exploiting the heteroscedasticity in our dataset to generate valid internal instruments.

 

Evergreening in the Euro Area: Facts and Explanation

Since the beginning of the financial crisis in 2007/8, new lending in the euro area has slowed sharply and the old loans experienced "evergreening", i.e. bad loans have been rolled over rather than being liquidated. Even though ameliorating evergreening is key to promote lending for new investment projects and growth, no systematic evergreening measures exist. In this paper, we propose a new cross-country evergreening index and develop a model to explain why evergreening may reflect the incentives of regulators to forebear. Our evergreening index is based on a survey we designed, and was administered by the ifo institute to about 1,000 experts in over 80 countries. We bring the model to the data using a heteroscedastic probit model and find that evergreening is higher in: (i) Euro-area countries than in the rest of the world; (ii) in countries facing bank distress; and (iii) is highest in countries which experience banking distress and are members of the euro area. These results are consistent with our theoretical model.

[IEW Working Paper #113]


Latest Publications (click for full text)

Nachfrageorientierte Klimapolitik – Evidenz aus der Corona-Krise, Wirtschaftsdienst

Capital Flight to Germany: Two Alternative Measures, Journal of International Money and Finance