Cover IMF Working Papers
Controlling Capital? Legal Restrictions and the Asset Composition of International Financial Flows
Author: Mahir Binici, Michael M. Hutchison, and Mr. Martin Schindler
Series:
IMF Working Papers
Volume/Issue:
Volume 2009: Issue 208
Language:
English
Publication Date:
01 Sep 2009
DOI:
https://doi.org/10.5089/9781451873559.001
ISBN:
9781451873559
ISSN:
1018-5941
Pages:
32
Keywords:
WP; capital control; capital flow; capital outflow; controls measure; stock market cap.
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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How effective are capital account restrictions? We provide new answers based on a novel panel data set of capital controls, disaggregated by asset class and by inflows/outflows, covering 74 countries during 1995-2005. We find the estimated effects of capital controls to vary markedly across the types of capital controls, both by asset categories, by the direction of flows, and across countries' income levels. In particular, both debt and equity controls can substantially reduce outflows, with little effect on capital inflows, but only high-income countries appear able to effectively impose debt (outflow) controls. The results imply that capital controls can affect both the volume and the composition of capital flows.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund