Microeconomic effects of capital controls: The Chilean experience during the 1990S

International Journal of Finance and Economics

Volumn 8, Issue 3, 2003, Pages 225-253

  Gallego, Francisco A ^a   Hernández, F Leonardo ^b  

^a MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^b CENTRAL BANK OF CHILE   (Chile)

Author keywords

Capital controls; Financial structure

Indexed keywords

CAPITAL FLOW; CAPITAL MARKET; FINANCIAL MARKET; MICROECONOMICS;

CHILE;

EID: 0041730208     PISSN: 10769307     EISSN: None     Source Type: Journal    
DOI: 10.1002/ijfe.207     Document Type: Article

References (31)

1. Arellano M, Bover O. 1995. Another look at the instrumental-variable estimation of error components models. Journal of Econometrics 68(1): 29 51.
2. Bandiera O, Caprio G, Honohan P, Schiantarelli F. 2000. Does financial reform raise or reduce saving? Review of Economics and Statistics 82(2): 239 263.
3. Bennett H, Loayza N, Schmidt-Hebbel K. 2001. Un Estudio del Ahorro Agregado por Agentes Económicos en Chile. Análisis Empírico del Ahorro en Chile, Morandé F, Vergara R (eds). Central Bank of Chile: Santiago.
4. Blundell R, Bond S. 1997. Initial conditions and moment restrictions in dynamic panel data models. Discussion Papers in Economics 97(07), University College, London.
5. Booth L, Aivazian V, Demirgüç-Kunt A, Maksimovic V. 2001. Capital structures in developing countries. The Journal of Finance LVI(1): 87 130.
6. Caprio G, Demirgüç-Kunt A. 1998. The role of long-term finance: theory and evidence. The World Bank Research Observer 13(2): 171 189.
7. De Gregorio J, Edwards S, Valdés R. 2000. Controls on capital inflows: do they work? Journal of Development Economics 63(1): 59 83.
8. Edwards S. 1998. Interest rate volatility, contagion and convergence: an empirical investigation of the cases of Argentina, Chile and Mexico. Journal of Applied Economics 1(1): 55 86.
9. Edwards S. 1999. How effective are controls on capital inflows? An evaluation of Chile's experience. Mimeo. University of California, Los Angeles.
10. Edwards S. 2000. Contagion. World Economy 23(7): 873 900.
11. Edwards S, Khan M. 1985. Interest rate determination in developing countries: a conceptual framework. International Monetary Fund Staff Papers Sept: 377 403.
12. Eyzaguirre N, Schmidt-Hebbel K. 1997. Encaje a la Entrada de Capitales y Ajuste Macroeconómico. Unpublished paper, Central Bank of Chile, Santiago.
13. Fazzari S, Hubbart G, Pettersen B. 1988. Financing constraints and corporate investment. Brookings Papers on Economic Activity 1: 141 195.
14. Forbes KJ. 2002. One cost of the Chilean capital controls: increased financial constraints for small firms. Unpublished manuscript, MIT.
15. Gallego F, Hernández L, Schmidt-Hebbel K. 1999. Capital controls in Chile: effective, efficient? Central Bank of Chile Working Paper 59.
16. Gallego F, Hernández L, Schmidt-Hebbel K. 2002. Capital controls in Chile: were they effective? In Banking, Financial Integration, and International Crises, Hernández L, Schmidt-Hebbel K (eds). Central Bank of Chile, Santiago.
17. Gallego F, Loayza N. 2001. Financial structure in Chile: macroeconomic developments and microeconomic effects. In Financial Structure and Economic Growth. A Cross Country Comparison of Banks, Markets, and Development, Demirguc-Kunt A, Levine R (eds). MIT Press: Boston, MA.
18. Herrera LO, Valdés R. 2001. The effect of capital controls on interest rate differentials. Journal of International Economics 53(2): 385 398.
19. Hoshi T, Kashyap A, Scharfstein D. 1991. Corporate structure, liquidity, and investment: Evidence from Japanese panel data. Quarterly Journal of Economics 106(1): 33 60.
20. Labán R, Larraín F. 1997. Can a liberalization of capital outflows increase net capital inflows? Journal of International Money and Finance 16(3): 415 431.
21. Larraín F, Labán R, Chumacero R. 2000. What determines capital inflows? An empirical analysis for Chile. In Capital Flows, Capital Controls, and Currency Crises: Latin America in the 1990s. Larraín F (ed.). The Michigan University Press: Ann Arbor, MI.
22. Lee JW, Lee YS, Lee BS. 1999. The determination of corporate debt in Korea. Harvard Institute for International Development Discussion Paper 718.
23. Le Fort G, Sanhueza G. 1997. Flujo de Capitales y Encaje en la Experiencia Chilena de los 90. Unpublished paper, Central Bank of Chile, Santiago.
24. Levine R, Loayza N, Beck T. 2000. Financial intermediation and growth: causality and causes. Journal of Monetary Economics 46(1): 31 77.
25. Medina JP, Valdes R. 1998. Flujo de Caja y Decisiones de Inversiones en Chile: Evidencia de Sociedades Anónimas Abiertas. Cuadernos de Economia 35(106): 301 323.
26. Nadal De-Simone F, Sorsa P. 1999. Capital account restrictions in Chile in the 1990s. Unpublished paper, IMF, Washington, DC.
27. Schmukler S, Vesperoni E. 2001. Firms' financing choices in bank-based and market-based economies. In Financial Structure and Economic Growth. A Cross Country Comparison of Banks, Markets, and Development, Demirgue-Kunt A, Levine R (eds). MIT Press: Boston, MA.
28. Soto C. 1997. Controles a los Movimientos de Capital: Evaluación Empírica del Caso Chileno. Unpublished paper, Central Bank of Chile, Santiago.
29. Soto M, Valdés-Prieto S. 1996. ¿Es el Control Selectivo de Capitales Efectivo en Chile? Su Efecto Sobre el Tipo de Cambio Real. Cuadernos de Economia 33(98): 77-104.
30. Valdés-Prieto S, Soto M. 1998. The effectiveness of capital controls: theory and evidence from Chile. Empirica 25(2): 133-164.
31. Valdés-Prieto S, Soto M. 2000. Selective capital controls: theory and evidence. In Capital Flows, Capital Controls, and Currency Crises: Latin America in the 1990s, Larraín F (ed.). The Michigan University Press: Ann Arbor, MI.