When are Capital Controls Effective? Evidence from Malaysia and Thailand
Jongwanich, Juthathip; Gochoco-Bautista, Maria Socorro; Lee, Jong-Wha | March 2011
Abstract
This study examines the impact of capital controls using monthly information to construct higher-frequency, quarterly indexes for Malaysia during the period 2000–2008 and Thailand over the period 2000–2010 in a vector auto-regression model. The results show that restrictions in Thailand have no significant effect on inflows but are especially effective for outflows, particularly foreign direct investment. In Malaysia, capital relaxation tends to have a significant impact on inward foreign direct investment and portfolio inflows. Changes in capital account policies do not have a significant impact on the real exchange rate in Malaysia and Thailand.
Citation
Jongwanich, Juthathip; Gochoco-Bautista, Maria Socorro; Lee, Jong-Wha. 2011. When are Capital Controls Effective? Evidence from Malaysia and Thailand. © Asian Development Bank. http://hdl.handle.net/11540/2040. License: CC BY 3.0 IGO.Keywords
Economic Development
Economic Infrastructure
Economic Policies
Regional Economic Development
Microfinance Programs
Public Finance
Local Financing
Financial Stability
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http://hdl.handle.net/11540/2040Metadata
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