Capital Folws, Capital Account Liberalisation and the Southern Mediterranean Countries
BNL Quarterly Review, voI. LX, no. 241, June 2007, pp. 137-65.
29 Pages Posted: 24 May 2012
Date Written: June 15, 2007
This paper examines questions related to possible capital account liberalisation in the Mediterranean countries. First, we provide an overview of the extent to which these countries have capital controls along with their exchange rate regimes and some basic macroeconomic aggregates. Second, we examine the case for capital account liberalisation, along with the prerequisites for successful liberalisation. Here we consider issues such as sequencing and possible benefits of synchronisation. Finally, we examine the experience with capital flows – both FDI and other capital flows. We explain these flows and use the past experience of these countries to draw some conclusions for the successful opening up of the capital account.
Keywords: capital account liberalisation, Mediterranean countries, capital flows
JEL Classification: F21, F32, F36
Suggested Citation: Suggested Citation