Effects of Capital Flow Liberalization : What is the Evidence from Recent Experiences of Emerging Market Economies? /

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...

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Autor principal: Saadi Sedik, Tahsin
Altres autors: Sun, Tao
Format: Revista
Idioma:English
Publicat: Washington, D.C. : International Monetary Fund, 2012.
Col·lecció:IMF Working Papers; Working Paper ; No. 2012/275
Accés en línia:Full text available on IMF
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520 3 |a 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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700 1 |a Sun, Tao. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2012/275 
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