How Effective are Capital Controls in Asia?

37 Pages Posted: 28 Mar 2011

See all articles by Maria Socorro Gochoco‐Bautista

Maria Socorro Gochoco‐Bautista

University of the Philippines, School of Economics

Juthathip Jongwanich

Australian National University (ANU) - Research School of Pacific and Asian Studies (RSPAS)

Jong-Wha Lee

Korea University

Date Written: February 2011

Abstract

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

Gochoco-Bautista, Maria Socorro and Jongwanich, Juthathip and Lee, Jong-Wha, How Effective are Capital Controls in Asia? (February 2011). Asian Development Bank Economics Working Paper Series No. 224. Available at SSRN: https://ssrn.com/abstract=1793462 or http://dx.doi.org/10.2139/ssrn.1793462

Maria Socorro Gochoco-Bautista (Contact Author)

University of the Philippines, School of Economics ( email )

Quezon City, Diliman
Philippines

Juthathip Jongwanich

Australian National University (ANU) - Research School of Pacific and Asian Studies (RSPAS) ( email )

Division of Economics, RSPAS
Canberra, Australian Capital Territory 0200
Australia

Jong-Wha Lee

Korea University ( email )

Anam-dong, Sungbuk-Ku
Dept. of Economics
Seoul, 136-701
82-2-3290-2216 (Phone)
82-2-928-4948 (Fax)

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