How effective are capital controls in Asia?

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

Research output: Contribution to journalArticle

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 1

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economy
capital movement
market economy
assets
regression
Asia
Emerging Asian countries
Capital controls
Capital outflows
Fixed effects
Panel regression
Assets
Emerging market economies
Emerging Asia
Capital account
Capital flows

ASJC Scopus subject areas

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

Cite this

How effective are capital controls in Asia? / Gochoco-Bautista, Maria Socorro; Jongwanich, Juthathip; Lee, Jong-Wha.

In: Asian Economic Papers, Vol. 11, No. 2, 01.06.2012, p. 122-143.

Research output: Contribution to journalArticle

Gochoco-Bautista, MS, Jongwanich, J & Lee, J-W 2012, 'How effective are capital controls in Asia?', Asian Economic Papers, vol. 11, no. 2, pp. 122-143. https://doi.org/10.1162/ASEP-a-00137
Gochoco-Bautista, Maria Socorro ; Jongwanich, Juthathip ; Lee, Jong-Wha. / How effective are capital controls in Asia?. In: Asian Economic Papers. 2012 ; Vol. 11, No. 2. pp. 122-143.
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