The leading digit distribution of the worldwide illicit financial flows

The leading digit distribution of the worldwide illicit financial flows The illicit financial flows (IFFs) exiting the developing countries are frequently discussed as hidden resources which could have been otherwise properly utilized for their development. Further, in the context of overhaul of the global financial system, necessitated by the current financial crisis, the IFFs have generated a lot of media and public interest which in turn has however also triggered a debate on the validity of these estimates. To look for completeness or rather for possible manipulation of financial data, forensic analysts routinely use a statistical tool called Benford’s law which states that in data sets from different phenomena leading digits tend to be distributed logarithmically such that the numbers beginning with smaller digits occur more often than those with larger ones. In order to gain some insight on their validity we investigate here the recent data on estimates of IFFs for conformity to Benford’s law. We find the patterns in the distribution of the leading digits in the IFFs data similar as predicted by Benford’s law and thereby establish that the frequency of occurrence of the leading digits in these estimates does closely follow the law. Quality & Quantity Springer Journals

The leading digit distribution of the worldwide illicit financial flows

Quality & Quantity , Volume 50 (1) – Dec 12, 2014

Loading next page...
Springer Netherlands
Copyright © 2014 by Springer Science+Business Media Dordrecht
Social Sciences; Methodology of the Social Sciences; Social Sciences, general
Publisher site
See Article on Publisher Site


You’re reading a free preview. Subscribe to read the entire article.

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 12 million articles from more than
10,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Unlimited reading

Read as many articles as you need. Full articles with original layout, charts and figures. Read online, from anywhere.

Stay up to date

Keep up with your field with Personalized Recommendations and Follow Journals to get automatic updates.

Organize your research

It’s easy to organize your research with our built-in tools.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

Monthly Plan

  • Read unlimited articles
  • Personalized recommendations
  • No expiration
  • Print 20 pages per month
  • 20% off on PDF purchases
  • Organize your research
  • Get updates on your journals and topic searches


Start Free Trial

14-day Free Trial

Best Deal — 39% off

Annual Plan

  • All the features of the Professional Plan, but for 39% off!
  • Billed annually
  • No expiration
  • For the normal price of 10 articles elsewhere, you get one full year of unlimited access to articles.



billed annually
Start Free Trial

14-day Free Trial