When are capital controls effective? Evidence from Malaysia and Thailand

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

When are capital controls effective? Evidence from Malaysia and Thailand

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

Department of Economics

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

This study examines the impact of capital controls using monthly information to construct higher-frequency, quarterly indexes for Malaysia during the period 2000-2008 and Thailand over the period 2000-2010 in a vector auto-regression model. The results show that restrictions in Thailand have no significant effect on inflows but are especially effective for outflows, particularly foreign direct investment. In Malaysia, capital relaxation tends to have a significant impact on inward foreign direct investment and portfolio inflows. Changes in capital account policies do not have a significant impact on the real exchange rate in Malaysia and Thailand.

Original language	English
Pages (from-to)	1-51
Number of pages	51
Journal	ADB Economics Working Paper Series
Volume	251
Publication status	Published - 2011 Mar

ASJC Scopus subject areas

Geography, Planning and Development
Economics and Econometrics
Political Science and International Relations

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Cite this

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When are capital controls effective? Evidence from Malaysia and Thailand

Abstract

ASJC Scopus subject areas

UN SDGs

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