Why Do Countries Use Capital Controls?

Author/Editor:

Natalia T. Tamirisa ; R. B. Johnston

Publication Date:

December 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Recourse to controls on capital flows among developing economies is generally quite pervasive. This paper examines the structure and determinants of capital controls based on a cross-sectional study of developing and transition economies. It identifies categories of capital transactions that can be aggregated for analytical purposes. Controls are found to be related to the balance of payments, macroeconomic management, market and institutional evolution, prudential and other factors. The relationship with the balance of payments, however, is not robust to simultaneous equation analysis.

Series:

Working Paper No. 98/181

English

Publication Date:

December 1, 1998

ISBN/ISSN:

9781451859164/1018-5941

Stock No:

WPIEA1811998

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

37

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