How Effective are Capital Controls in Asia?
37 Pages Posted: 28 Mar 2011
Date Written: February 2011
This study examines the effects of capital account restrictions on capital flows in nine Asian economies over the period 1995-2005 using panel regressions with fixed effects. The results show that capital controls significantly affect capital flows when such flows are disaggregated by asset type and direction of flow. Tests for the presence of possible asymmetric effects, substitution effects, and endogeneity of capital controls are conducted.
Keywords: Capital, Capital Flows, Capital Controls, Financial Integration, Foreign Direct Investment, FDI, Malaysia, Mal, Thailand, Tha, Economic Working Paper No. 224
JEL Classification: F21, F32, F36, F41, G15, O53
Suggested Citation: Suggested Citation