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When Does Capital Account Liberalization Help More Than it Hurts?

When Does Capital Account Liberalization Help More Than it Hurts?
Author: Carlos Arteta
Publisher:
Total Pages: 56
Release: 2001
Genre: Balance of payments
ISBN:

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In this paper we reconsider the evidence on capital account liberalization and growth. While we find indications of a positive association, the effects vary with time, with how capital account liberalization is measured, and with how the relationship is estimated. The evidence that the effects of capital account liberalization are stronger in high-income countries is similarly fragile. There is some evidence that the positive growth effects of liberalization are stronger in countries with strong institutions, as measured by standard indicators of the rule of law, but only weak evidence that the benefits grow with a country's financial depth and development. We find more evidence of a correlation between capital account liberalization and growth when we allow the effect to vary with other dimensions of openness. There are two interpretations of this finding, one in terms of the sequencing of trade and financial liberalization, the other in terms of the need to eliminate major macroeconomic imbalances before opening the capital account. By and large our results support the second interpretation.


One Currency, Two Markets

One Currency, Two Markets
Author: Edwin L.-C. Lai
Publisher: Cambridge University Press
Total Pages: 347
Release: 2021-07-08
Genre: Business & Economics
ISBN: 1108491685

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Economic analysis of the future of the international monetary system and the USD, and the rising importance of the RMB.


Capital Account Liberalization

Capital Account Liberalization
Author: Peter Blair Henry
Publisher:
Total Pages: 61
Release: 2007
Genre: Capital market
ISBN:

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"Writings on the macroeconomic impact of capital account liberalization find few, if any, robust effects of liberalization on real variables. In contrast to the prevailing wisdom, I argue that the textbook theory of liberalization holds up quite well to a critical reading of this literature. The loin's share of papers that find no effect of liberalization on real variables tell us nothing about the empirical validity of the theory, because they do not really test it. This paper explains why it is that most studies do not really address the theory they set out to test. It also discusses what is necessary to test the theory and examines papers that have done so. Studies that actually test the theory show that liberalization has significant effects on the cost of capital, investment, and economic growth"--Executive summary (p.5)


Capital Account Liberalization and Inequality

Capital Account Liberalization and Inequality
Author: Davide Furceri
Publisher: International Monetary Fund
Total Pages: 26
Release: 2015-11-24
Genre: Business & Economics
ISBN: 1513531409

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This paper examines the distributional impact of capital account liberalization. Using panel data for 149 countries from 1970 to 2010, we find that, on average, capital account liberalization reforms increase inequality and reduce the labor share of income in the short and medium term. We also find that the level of financial development and the occurrence of crises play a key role in shaping the response of inequality to capital account liberalization reforms.


Capital Flows and Crises

Capital Flows and Crises
Author: Barry J. Eichengreen
Publisher: MIT Press
Total Pages: 396
Release: 2004
Genre: Business & Economics
ISBN: 9780262550598

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An analysis of the connections between capital flows and financial crises as well as between capital flows and economic growth.


IEO Evaluation Report on the IMF's Approach to Capital Account Liberalization 2005

IEO Evaluation Report on the IMF's Approach to Capital Account Liberalization 2005
Author: International Monetary Fund. Independent Evaluation Office
Publisher: International Monetary Fund
Total Pages: 114
Release: 2005-08-09
Genre: Business & Economics
ISBN: 1589064151

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Drawing on evidence from a sample of emerging market economies over the period 1990-2004, this evaluation report reviews the IMF’s approach to capital account liberalization and related issues. The evaluation seeks to contribute to transparency by documenting what in practice has been the IMF's approach to these issues and to identify areas where the IMF’s instruments and operating methods might be improved, in order to deal with these issues more effectively.


Capital Liberalization in Transition Countries

Capital Liberalization in Transition Countries
Author: Age Bakker
Publisher: Edward Elgar Publishing
Total Pages: 282
Release: 2003-01-01
Genre: Business & Economics
ISBN: 9781781957486

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'This collection provides an excellent account of the diverging ways countries in varying parts of the world went about liberalizing capital flows. Case studies of transition countries are set against the background of more general studies analysing the Asian and Latin American experience, as well as the earlier liberalization processes in economically advanced countries. The reader gets a lively picture of the many pitfalls that beset the road to full capital liberalization and will realise that there is no single best way to liberalize. The authors strike one as unprejudiced and far from dogmatic, out to learn from experience rather than trying to impose some particular point of view.' - Hans Visser, Vrije Universiteit, Amsterdam, The Netherlands This significant new book provides a succinct overview of the essential policy issues surrounding capital liberalization. The book compares the experiences of transition economies in Europe with those of advanced nations, allowing the reader to examine the changing international economic and financial environment within which transition countries have to liberalize.


The Princeton Encyclopedia of the World Economy. (Two volume set)

The Princeton Encyclopedia of the World Economy. (Two volume set)
Author: Kenneth A. Reinert
Publisher: Princeton University Press
Total Pages: 1329
Release: 2010-08-02
Genre: Political Science
ISBN: 1400830400

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An essential reference to all facets of the world economy Increasing economic globalization has made understanding the world economy more important than ever. From trade agreements to offshore outsourcing to foreign aid, this two-volume encyclopedia explains the key elements of the world economy and provides a first step to further research for students and scholars in public policy, international studies, business, and the broader social sciences, as well as for economic policy professionals. Written by an international team of contributors, this comprehensive reference includes more than 300 up-to-date entries covering a wide range of topics in international trade, finance, production, and economic development. These topics include concepts and principles, models and theory, institutions and agreements, policies and instruments, analysis and tools, and sectors and special issues. Each entry includes cross-references and a list of sources for further reading and research. Complete with an index and a table of contents that groups entries by topic, The Princeton Encyclopedia of the World Economy is an essential resource for anyone who needs to better understand the global economy. More than 300 alphabetically arranged articles on topics in international trade, finance, production, and economic development International team of contributors Annotated list of further reading with each article Topical list of entries Full index and cross-references Entry categories and sample topics: Concepts and principles: globalization, anti-globalization, fair trade, foreign direct investment, international migration, economic development, multinational enterprises Models and theory: Heckscher-Ohlin model, internalization theory, New Trade Theory, North-South trade, Triffin dilemma Institutions and agreements: European Union, International Monetary Fund, World Trade Organization, World Bank, Doha Round, international investment agreements Policies and instruments: dollar standard, international aid, sanctions, tariffs Analysis and tools: exchange rate forecasting, effective protection, monetary policy rules Sectors and special issues: child labor, corporate governance, the digital divide, health and globalization, illegal drugs trade, petroleum, steel


Convergence as Adaptivity

Convergence as Adaptivity
Author: Zhiyuan Wang
Publisher: State University of New York Press
Total Pages: 177
Release: 2023-07-01
Genre: Political Science
ISBN: 1438493800

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Convergence as Adaptivity explores under what conditions policy convergence may be seen an indication of policy autonomy. Zhiyuan Wang advances a theory that argues states substitute unwanted policy changes dictated by globalization with politically feasible ones. Investigating bilateral investment treaties, preferential trade agreements, corporate taxation, and central bank independence as policy substitutes, he provides both quantitative and qualitative evidence to substantiate the core theoretical argument and explores under what conditions policy convergence can be an indication of policy autonomy and through what manner. The result is a systemic and rigorous exploration of the idea of policy substitution and its consequences under globalization. Wang's findings will be of interest to scholars, practitioners, and concerned citizens hoping to deepen their understanding of globalization as well as useful for undergraduate and graduate courses in international relations, international and comparative political economy, and globalization.