Capital flow management policies in emerging market economies: Are they successful in mitigating drastic changes of capital flows?

Inbin Hwang, Hyungsoon Park, Sunyoung Park

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

This paper constructs a new database for capital flow management policies (CFMs) in 16 emerging market economies from 1999 to 2008 and analyses their effect on extreme capital flow movements. We show that CFMs are effective in mitigating drastic changes of capital flows. We also find that CFMs do not have significant impacts on capital flow volumes. The results suggest that CFMs could be employed as policy toolkits for mitigating extreme capital flow movements without distorting capital flows in a normal period.

Original languageEnglish
Pages (from-to)413-426
Number of pages14
JournalInternational Journal of Finance and Economics
Volume23
Issue number4
DOIs
StatePublished - Oct 2018

Keywords

  • capital flows
  • CFMs
  • emerging market economies
  • sudden stops
  • surges

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