{"title":"Capital controls and capital flows: Do controls reduce the size of flows?","authors":"Gao Chen","doi":"10.1016/j.jimonfin.2024.103091","DOIUrl":null,"url":null,"abstract":"<div><p>This paper examines the effectiveness of capital controls in limiting the size of capital outflows based on a large panel data that covers 98 countries from 1995 to 2015. Results in this paper show that imposing comprehensive capital controls that put restrictions on almost all assets categories is the necessary condition to stem outflows. In addition, comprehensive capital controls can also be imposed temporarily to reduce outflows even though a country had a fairly open capital account in the past. This provides policy rationale for using capital controls as a temporary tool to alter outflows when needed. Lastly, on targeting a particular type of asset flows, this paper finds that countries are able to reduce banking flows by closing assets channels that affect banking flows only.</p></div>","PeriodicalId":48331,"journal":{"name":"Journal of International Money and Finance","volume":"145 ","pages":"Article 103091"},"PeriodicalIF":2.8000,"publicationDate":"2024-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of International Money and Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0261560624000780","RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
This paper examines the effectiveness of capital controls in limiting the size of capital outflows based on a large panel data that covers 98 countries from 1995 to 2015. Results in this paper show that imposing comprehensive capital controls that put restrictions on almost all assets categories is the necessary condition to stem outflows. In addition, comprehensive capital controls can also be imposed temporarily to reduce outflows even though a country had a fairly open capital account in the past. This provides policy rationale for using capital controls as a temporary tool to alter outflows when needed. Lastly, on targeting a particular type of asset flows, this paper finds that countries are able to reduce banking flows by closing assets channels that affect banking flows only.
期刊介绍：
Since its launch in 1982, Journal of International Money and Finance has built up a solid reputation as a high quality scholarly journal devoted to theoretical and empirical research in the fields of international monetary economics, international finance, and the rapidly developing overlap area between the two. Researchers in these areas, and financial market professionals too, pay attention to the articles that the journal publishes. Authors published in the journal are in the forefront of scholarly research on exchange rate behaviour, foreign exchange options, international capital markets, international monetary and fiscal policy, international transmission and related questions.
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