How effective are capital controls in Asia?

Maria Socorro Gochoco-Bautista, Juthathip Jongwanich, Jong Wha Lee

Research output: Contribution to journalReview article

14 Citations (Scopus)

Abstract

This study examines the effects of capital account restrictions on capital flows in nine emerging Asian economies using panel regressions with 75 economies and fixed effects over the period 1995-2007. The results show that effectiveness of capital controls in the nine emerging Asian economies varies by asset type and by direction of flow and may differ from that in the rest of the world. For example, unlike in the rest of the world, the use of controls on capital outflows in emerging Asia actually increases the amount of these outflows. This finding suggests that it may be best for emerging market economies in Asia to liberalize rather than constrain capital outflows if they want to prevent such outflows.

Original languageEnglish
Pages (from-to)122-143
Number of pages22
JournalAsian Economic Papers
Volume11
Issue number2
DOIs
Publication statusPublished - 2012 Jun

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics
  • Political Science and International Relations

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