Dynamic Capital Mobility in Pacific Basin Developing Countries: Estimation and Policy Implications
November 1, 1991
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Summary
This paper estimates empirically the changing degree of capital mobility in several Pacific Basin countries that have pursued financial liberalization in recent years. Tracing the impact of the liberalization process on the capital account, the paper also examines the implications for monetary policy operating in this changing economic environment. Empirical estimates support an overall finding of increased capital mobility in the region over the past decade. However, country experiences, with the exception of Singapore, have been more episodic--oscillating between periods of high and low financial openness--rather than uniform in regards to changing capital mobility.
Subject: Balance of payments, Capital controls, Currency markets, Exchange rates, Financial integration, Financial markets, Financial services, Foreign exchange, Interest rate parity
Keywords: ARCH estimation, Auto-regressive Conditional Heteroschedasticity, Capital controls, capital mobility, Currency markets, differentials vis-à-vis, Exchange rates, Financial integration, Interest rate parity, IRP deviation, liberalization measure, offsetting market response, open economy, WP
Pages:
50
Volume:
1991
DOI:
Issue:
115
Series:
Working Paper No. 1991/115
Stock No:
WPIEA1151991
ISBN:
9781451853834
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 39, No. 3, September 1992.
