A survey of the literature on managing capital inflows

Managing Capital Flows: The Search for a Framework

Volumn , Issue , 2010, Pages 46-72

  Kawai, Masahiro ^a   Takagi, Shinji ^b  

^a ASIAN DEVELOPMENT BANK INSTITUTE   (Japan)

^b OSAKA UNIVERSITY   (Japan)

Author keywords

[No Author keywords available]

Indexed keywords

EID: 84881768146     PISSN: None     EISSN: None     Source Type: Book    
DOI: None     Document Type: Chapter

References (85)

1. Abdelal, R. (2007), Capital Rules: The Construction of Global Finance, Cambridge, MA: Harvard University Press.
2. Aizenman, J. and N. Marion (2004), 'The merits of horizontal versus vertical FDI in the presence of uncertainty', Journal of International Economics, 62, 125-48.
3. Alfaro, L. and F. Kanczuk (2007), 'Debt maturity: is long-term debt optimal?', NBER Working Paper No. 13119.
4. Allen, M., C. Rosenberg, C. Keller, B. Setser and N. Roubini (2002), 'A balance sheet approach to financial crisis', Working Paper 02/210, International Monetary Fund.
5. Ariyoshi, A., K. Habermeier, B. Laurens, I. Okter-Robe, J.I. Canales-Kriljenko and A. Kirilenko (2000), 'Capital controls: country experiences with their use and liberalization', Occasional Paper 190, International Monetary Fund.
6. Arteta, C., B. Eichengreen and C. Wyplosz (2001), 'When does capital account liberalization help more than it hurts?', NBER Working Paper No. 8414.
7. Asian Policy Forum (2002), 'Policy proposal for sequencing the PRC's domes-tic and external financial liberalization', Asian Development Bank Institute, Tokyo.
8. Athukorala, P. (2003), 'Foreign direct investment in crisis and recovery: lessons from the 1997-1998 Asian Crisis', Australian Economic History Review, 43, 197-213.
9. Bartolini, L. and A. Drazen (1997), 'Capital-account liberalization as a signal', American Economic Review, 87, March, 138-54.
10. Bekaert, G., C.R. Harvey, and C. Lundblad (2005), 'Does financial liberalization spur growth?', Journal of Financial Economics, 77, 3-55.
11. Bikhchandani, S. and S. Sharma (2001), 'Herd behavior in financial markets', International Monetary Fund Staff'Papers, 47, 279-310.
12. Bloomfield, A.I. (1946), 'Postwar control of international capital movements', American Economic Review, 36, 687-709.
13. Borensztein, E., J. De Gregorio and J.W. Lee (1998), 'How does foreign direct investment affect economic growth?', Journal of International Economics, 45, 115-35.
14. Burger, J. and F. Warnock (2006), 'Local currency bond markets', International Monetary Fund Staff Papers, 53, 133-46.
15. Bussiere, M. and C. Mulder (1999), 'External vulnerability in emerging market economies: how high liquidity can offset weak fundamentals and the effects of contagion', Working Paper 99/88, International Monetary Fund.
16. Calvo, G. (1991), 'The perils of sterilization', International Monetary Fund Staff Papers, 38, 921-6.
17. Calvo, G. and C. Reinhart (2000), 'When capital flows come to a sudden stop: consequences and policy', in P.B. Kenen and A.K. Swoboda (eds), Reforming the International Monetary and Financial System, Washington, DC: International Monetary Fund, pp. 175-201.
18. Calvo, G., L. Leiderman and C. Reinhart (1996), 'Inflows of capital to developing countries in the 1990s', Journal of Economic Perspectives, 10, 123-39.
19. Calvo, G., A. Izquierdo and L.F. Mejia (2004), 'On the empirics of sudden stops: the relevance of balance-sheet effect', NBER Working Paper No. 10520.
20. Carlson, M. and L. Hernandez (2002), 'Determinants and repercussions of the composition of capital inflows', IMF Working Paper 02/86.
21. Cho, Y.J. (2001), 'The role of poorly phased liberalization in Korea's financial crisis', in G. Caprio, P. Honohan, and J.E. Stiglitz (eds), Financial Liberalization: How Far, How Fast?, Cambridge and New York: Cambridge University Press, pp. 159-87.
22. Chuhan, P., G. Perez-Quiros and H. Popper (1996), 'International capital flows: do short-term investment and direct investment differ?', Policy Research Working Paper No. 1669, World Bank.
23. Chuhan, P., S. Claessens and N. Mamingi (1998), 'Equity and bond flows to Latin America and Asia: the role of global and country factors', Journal of Development Economics, 55, 439-63.
24. Claessens, S., M. Dooley and A. Warner (1995), 'Portfolio capital flows: hot or cold', The World Bank Economic Review, 9, 153-74.
25. Cooper, R. (1999), 'Should capital controls be banished?', Brookings Papers on Economic Activity, 1, 89-125.
26. Desai, M., G. Fritz Foley and J. Hines, Jr (2006), 'Capital controls, liberalizations, and foreign direct investment', Review of Financial Studies, 19, 1433-64.
27. Detragiache, E. and A. Spilimbergo (2001), 'Crises and liquidity: evidence and interpretation', IMF Working Paper 01/2.
28. Dooley, M. (1996), 'A survey of literature on controls over international capital transactions', International Monetary Fund Staff'Papers, 43, 639-87.
29. Doraisami, A.G. (2007), 'Financial crisis in Malaysia: did FDI flows contribute to vulnerability?', Journal of International Development, 19, 949-62.
30. Dornbusch, R., I. Goldfajn and R. Valdes (1995), 'Currency crises and collapses', Brookings Papers on Economic Activity, 2, 219-93.
31. Edison, H., M. Klein, L. Ricci and T. Slok (2002), 'Capital account liberalization and economic performance: survey and synthesis', IMF Working Paper 02/120.
32. Edwards, S. (1984), 'The Order of Liberalization of the External Sector in Developing Countries', Princeton Essays in International Finance 156, Princeton, NJ: International Economics Section, Princeton University.
33. Edwards, S. (1999), 'How effective are capital controls?', Journal of Economic Perspectives, 13, 65-84.
34. Eichengreen, B. and D. Leblang (2002), 'Capital account liberalization and growth: was Mr. Mahathir right?', NBER Working Paper No. 9427.
35. Eichengreen, B., M. Mussa, G. Dell'Ariccia, E. Detragiache, G. M. Milesi-Ferretti and A. Tweedie (1998), 'Capital account liberalization: theoretical and practical aspects', Occasional Paper 172, International Monetary Fund.
36. Eichengreen, B., R. Hausmann and U. Panizza (2003), 'Currency mismatches, debt intolerance, and original sin: why they are not the same and why it matters', NBER Working Paper No. 10036.
37. Fernandez-Arias, E. and P. Montiel (1995), 'The surge in capital inflows to developing countries: prospects and policy response', Policy Research Working Paper No. 1473, World Bank.
38. Ffrench-Davis, R. and H. Tapia (2004), 'The Chilean-style of capital controls: an empirical assessment', United Nations Economic Commission for Latin America and the Caribbean.
39. Fischer, S. (1998), 'Capital account liberalization and the role of the IMF', in S. Fischer, R.N. Cooper, R. Dornbusch, P.M. Garber, C. Massad, J.J. Polak, D. Rodrik and S.S. Tarapore, Should the IMF Pursue Capital-Account Convertibility?, Princeton Essays in International Finance No. 207, May, Princeton, NJ: International Economics Section, Princeton University, pp. 1-10.
40. Forbes, K. (2007), 'The microeconomic evidence on capital controls: no free lunch', in S. Edwards (ed.), Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, Chicago: University of Chicago Press, pp. 171-99.
41. Frankel, J. and A. Rose (1996), 'Currency crashes in emerging markets: an empirical treatment', Journal of International Economics, 41, 351-66.
42. Fukao, M. (1990), 'Liberalization of Japan's foreign exchange controls and structural changes in the balance of payments', Bank of Japan Monetary and Economic Studies, 8, 101-65.
43. Funke, N. (1993), 'Timing and sequencing of reforms: competing views and role of credibility', Kyklos, 46, 337-62.
44. Gallego, F., L. Hernandez and K. Schmidt-Hebbel (2002), 'Capital controls in Chile: were they effective?', in L. Hernandez and K. Schmidt-Hebbel (eds), Banking, Financial Integration, and International Crises, Santiago: Central Bank of Chile.
45. Grilli, V. and G.M. Milesi-Ferretti (1995), 'Economic effects and structural deter-minants of capital controls', International Monetary Fund Staff' Papers, 42, 54-88.
46. Guitian, M. (1996), 'The issue of capital account convertibility: a gap between norms and reality', in S.M. Nsouli and M. Guitian (eds), Currency Convertibility in the Middle East and North Africa, Washington: International Monetary Fund, pp. 169-88.
47. Henry, P.B. (2000), 'Do stock market liberalizations cause investment booms?', Journal of Financial Economics, 58, 301-34.
48. Henry, P.B. (2007), 'Capital account liberalization: theory, evidence, and speculation', Journal of Economic Literature, 45, December, 887-935.
49. IEO (Independent Evaluation Office) (2005), 'The IMF's approach to capital account liberalization', International Monetary Fund.
50. IMF (International Monetary Fund) (2007), 'Managing large capital inflows', World Economic Outlook, Washington: International Monetary Fund, Chapter 3.
51. Ingves, S. (2003), 'Sequencing capital account liberalization and financial sector stability', in A.F.P. Bakker and B. Chapple (eds), Capital Liberalization in Transition Countries: Lessons from the Past and for the Future, Cheltenham, UK and Northampton, MA, USA: Edward Elgar, pp. 43-57.
52. Ishii, S., K. Habermeier, J.I. Canales-Kriljenko, B. Laurens, J. Leimone and J. Vadasz (2002), 'Capital account liberalization and financial sector stability', Occasional Paper 211, International Monetary Fund.
53. Ishii, S., J.I. Canales-Kriljenko, R. Guimaraes and C. Karacadag (2006), 'Official foreign exchange intervention', Occasional Paper 249, International Monetary Fund.
54. James, H. (1996), International Monetary Cooperation Since Bretton Woods, Washington: International Monetary Fund and Oxford: Oxford University Press.
55. Jinjarak, Y. (2007), 'Foreign direct investment and macroeconomic risk', Journal of Comparative Economics, 35, 509-19.
56. Johnston, R.B. and C. Ryan (1994), 'The impact of controls on capital movements on the private capital accounts of countries' balance of payments: empirical estimates and policy implications', Working Paper No. 94/78, International Monetary Fund.
57. Johnston, R.B., S.M. Darbar and C. Echeverria (1999), 'Sequencing capital account liberalization: lessons from Chile, Indonesia, Korea, and Thailand', in R.B. Johnston and V. Sundarajan (eds), Sequencing Financial Sector Reforms: Country Experiences and Issues, Washington: International Monetary Fund, pp. 245-383.
58. Jomo, K. S. (2003), 'Capital flows into and from Malaysia', in S. Griffith-Jones, R. Gottschalk and J. Cailloux (eds), International Capital Flows in Calm and Turbulent Times: The Need for New International Architecture, Ann Arbor: University of Michigan Press, pp. 107-61.
59. Kaminsky, G.L., C. Reinhart and C. Vegh (2004), 'When it rains, it pours: pro-cyclical capital flows and macroeconomic policies', NBER Working Paper No. 10780.
60. Kawai, M and S. Takagi (2004), 'Rethinking capital controls: the Malaysian experience', in S. Chirathivat, E.M. Claassen and J. Schroeder (eds), East Asia's Monetary Future: Integration in the Global Economy, Cheltenham, UK and Northampton, MA, USA: Edward Elgar, pp. 182-214.
61. Kimball, D. and F. Xiao (2005), 'Effectiveness and effects of China's capital controls', China & World Economy, 13, July/August, 58-69.
62. Koo, R.C. (1993), 'International capital flows and an open economy: the Japanese experience', in S. Takagi (ed.), Japanese Capital Markets: New Developments in Regulations and Institutions, Oxford: Basil Blackwell, pp. 78-129.
63. Kose, M.A., E. Prasad and M. Terrones (2003), 'Financial integration and macroeconomic volatility', International Monetary Fund Staff Papers, 50, 119-42.
64. Le Fort, G. and S. Lehmann (2003), 'The unremunerated reserve requirement and net capital flows: Chile in the 1990s', CEPAL Review, No. 81, United Nations Economic Commission for Latin America and the Caribbean.
65. Lipsey, R. (1999), 'The role of foreign direct investment in international capital flows', NBER Working Paper No. 7094.
66. Magud, N. and C. Reinhart (2007), 'Capital controls: an evaluation', in S. Edwards (eds), Capital Controls and Capital Flows in Emerging Economies: Policies, Practices, and Consequences, Chicago: University of Chicago Press, pp. 645-74.
67. Martell, R. and R. Stulz (2003), 'Equity-market liberalizations as country IPO's', American Economic Review, 93, 97-101.
68. Mathieson, D. and L. Rojas-Suarez (1993), 'Liberalization of the capital account: experiences and issues', Occasional Paper 103, International Monetary Fund.
69. McKinnon, R. (1982), 'The order of economic liberalization: lessons from Chile and Argentina', Carnegie-Rochester Conference Series on Public Policy, 17, 159-86.
70. Nadal-De Simone, F. and P. Sorsa (1999), 'A review of capital account restrictions in Chile in the 1990s', Working Paper 99/52, International Monetary Fund.
71. Nsouli, S., M. Rached and N. Funke (2002), 'The speed of adjustment and the sequencing of economic reforms: issues and guidelines for policymakers', Working Paper 02/132, International Monetary Fund.
72. Prasad, E., K. Rogoff, S. Wei and M. Ayhan Kose (2003), 'Effects of financial globalization on developing countries: some empirical evidence', Occasional Paper 220, International Monetary Fund.
73. Quinn, D. (1997), 'The correlates of change in international financial regulation', American Political Science Review, 91, 531-51.
74. Reinhart, C.M. and V.R. Reinhart (1998), 'Some lessons for policy makers who deal with the mixed blessing of capital inflows', in M. Kahler (ed.), Capital Flows and Financial Crises, New York: Council on Foreign Relations, pp. 93-127.
75. Reisen, H. and M. Soto (2001), 'Which types of capital inflows foster developing- country growth?', International Finance, 4, 1-14.
76. Rodrik, D. (1998), 'Who needs capital-account convertibility?', in S. Fischer, R.N. Cooper, R. Dornbusch, P.M. Garber, C. Massad, J.J. Polak, D. Rodrik and S.S. Tarapore, Should the IMF Pursue Capital-Account Convertibility?, Princeton Essays in International Finance, No. 207, May, Princeton, NJ: International Economics Section, Princeton University, pp. 55-65.
77. Rodrik, D. and A. Velasco (1999), 'Short-term capital flows', NBER Working Paper No. 7364.
78. Schadler, S., M. Carkovic, A. Bennett and R. Kahn (1993), 'Recent experiences with surges in capital inflows', Occasional Paper 108, International Monetary Fund.
79. Shah, A. and I. Patnaik (2005), 'India's experience with capital controls: the elusive quest for a sustainable current account deficit', NBER Working Paper No. 11387.
80. Sheng, A. (2008), 'The fetish of liquidity: liquidity, leverage and moral hazard - lessons from Asian and subprime crises', paper presented at the G20 Seminar on Competition in the Financial Sector, Bali, 16-17 February.
81. Siamwalla, A., Y. Vajraqupta and P. Vichyanond (2003), 'Foreign capital flows to Thailand: determinants and impact', in S. Griffith-Jones, R. Gottschalk and J. Cailloux (eds), International Capital Flows in Calm and Turbulent Times: The Need for New International Architecture, Ann Arbor: University of Michigan Press, pp. 75-106.
82. Stiglitz, J. (2000), 'Capital market liberalization, economic growth and instability', World Development, 28, 1075-86.
83. Tesar, L.L. (1995), 'Evaluating the gains from international risk sharing', Carnegie- Rochester Conference Series on Public Policy', 42, 95-143.
84. Thiel, E. (2003), 'Recent codes-based liberalization in the OECD', in A.F.P. Bakker and B. Chapple (eds), Capital Liberalization in Transition Countries: Lessons from the Past and the Future, Cheltenham, UK and Northampton, MA, USA: Edward Elgar, pp. 85-104.
85. Wei, S. and Z. Zhang (2007), 'Collateral damage: exchange controls and interna-tional trade', Working Paper 07/08, International Monetary Fund.