When are capital controls effective? Evidence from Malaysia and Thailand

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

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)1-51
Number of pages51
JournalADB Economics Working Paper Series
Volume251
Publication statusPublished - 2011 Mar 1

Fingerprint

Thailand
Malaysia
foreign direct investment
direct investment
foreign investment
inflow
vector autoregression
evidence
real exchange rate
outflow
regression
Capital controls
Foreign direct investment
index
effect
policy
Vector autoregression model
Real exchange rate
Capital account

ASJC Scopus subject areas

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

Cite this

When are capital controls effective? Evidence from Malaysia and Thailand. / Jongwanich, Juthathip; Gochoco-Bautista, Maria Socorro; Lee, Jong-Wha.

In: ADB Economics Working Paper Series, Vol. 251, 01.03.2011, p. 1-51.

Research output: Contribution to journalArticle

Jongwanich, Juthathip ; Gochoco-Bautista, Maria Socorro ; Lee, Jong-Wha. / When are capital controls effective? Evidence from Malaysia and Thailand. In: ADB Economics Working Paper Series. 2011 ; Vol. 251. pp. 1-51.
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