Effects of Capital Flow Liberalization—What is the Evidence from Recent Experiences of Emerging Market Economies? : What is the Evidence from Recent Experiences of Emerging Market Economies?.
Material type: TextSeries: IMF Working PapersPublisher: Washington : International Monetary Fund, 2012Copyright date: ©2012Description: 1 online resource (28 pages)Content type: text Media type: computer Carrier type: online resourceISBN: 9781475547276Subject(s): Capital movements -- Developing countries | Economic development -- Developing countriesGenre/Form: Electronic books.Additional physical formats: Print version:: Effects of Capital Flow Liberalization—What is the Evidence from Recent Experiences of Emerging Market Economies? : What is the Evidence from Recent Experiences of Emerging Market Economies?DDC classification: 332.042 LOC classification: HG3891 -- .S23 2012ebOnline resources: Click to ViewCover -- Contents -- Abstract -- I. Introduction -- II. Measuring Capital Flow Restrictiveness -- III. Recent Trends in Capital Flow Liberalization -- IV. Empirical Strategy and Results -- V. Simulation of the Effects of Capital Flow Liberalization on China -- VI. Conclusions and Policy Implications -- References -- Tables -- 1. Countries that Liberalized During 1995-2010 -- 2. Panel Regressions-Real GDP per Capita Growth -- 3. Panel Regressions-Inflation -- 4. Panel Regressions-Equity returns -- 5. Panel Regressions-Capital Adequacy Ratios -- 6. Panel Regressions-Capital Inflows -- 7. Panel Regressions-Capital Outflows -- Figures -- 1. Capital Flow Liberalization Index -- 2. Liberalization of Capital Flows, 1997 and 2010 -- 3. De Jure and de Facto Measure of Liberalizing Capital Flows (2010) -- 4. Effects of Liberalizing Capital Flows in China -- Appendices -- I. Data Definition and Sources -- II. Assumptions for Simulation of the Effects of Capital Flow Liberalization on China.
This paper analyzes the experiences of emerging market economies (EMEs) that have liberalized capital flows over the past 15 years with respect to macroeconomic performance and risks to financial stability. The results of the panel data regressions indicate that greater openness to capital flows is associated with higher growth, gross capital flows, and equity returns and with lower inflation and bank capital adequacy ratios. The effects vary depending on thresholds. As a potential application of these findings, the paper explores the possible effects of liberalization on China by applying the coefficients of explanatory variables to the corresponding variables of China in 2012–16.
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Electronic reproduction. Ann Arbor, Michigan : ProQuest Ebook Central, 2018. Available via World Wide Web. Access may be limited to ProQuest Ebook Central affiliated libraries.
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