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Effectiveness of Capital Outflow Restrictions, Christian Saborowski, Sarah Sanya, Hans Weisfeld, Juan Yepez

This paper examines the effectiveness of capital outflow restrictions in a sample of 37 emerging market economies during the period 1995-2010, using a panel vector autoregression approach with interaction terms. Specifically, it examines whether a tightening of outflow restrictions helps reduce net capital outflows. We find that such tightening is effective if it is supported by strong macroeconomic fundamentals or good institutions, or if existing restrictions are already fairly comprehensive. When none of these three conditions is fulfilled, a tightening of restrictions fails to reduce net outflows as it provokes a sizeable decline in gross inflows, mainly driven by foreign investors
Table Of Contents
Cover; Contents; I. Introduction; Boxes; 1. Selected Country Experiences with Outflow Restrictions; II. Data and Empirical Approach; Tables; 1. Country Sample; 2. Definitions and Sources of Variables; 3. Summary Statistics of Selected Variables, 1995-2010; 4. Outflow Restrictions (Schindler), 1995 and 2010; 5. Selected Characteristics of Countries that use Outflow Controls; Figures; 1. Number of Emerging Market Countries Tightening Capital Outflow Restrictions, 1996-2010; III. Estimation Results; 2. Impulse Responses to an Unexpected Increase in the Outflow Controls Index
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (35 p.)
Specific Material Designation
Form Of Item

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