{
  "title": "Effectiveness of Capital Outflow Restrictions",
  "publication": "IMF Working Papers, January 21, 2014",
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  "summary": "This paper examines the effectiveness of capital outflow restrictions in a sample of 37 emerging market economies during the period 1995-2010, using a panel vector autoregression approach with interaction terms.",
  "sections": [
    {
      "heading": "Sample and methodology",
      "content": "- Sample: 37 emerging market economies during the period 1995-2010.\n- Method: panel vector autoregression approach with interaction terms.\n- Research question: whether a tightening of outflow restrictions helps reduce net capital outflows."
    },
    {
      "heading": "Key findings",
      "content": "- A tightening of outflow restrictions is effective at reducing net capital outflows if at least one of the following conditions holds:\n  - strong macroeconomic fundamentals;\n  - good institutions;\n  - existing restrictions are already fairly comprehensive.\n- When none of the three conditions is fulfilled, a tightening of restrictions fails to reduce net outflows and instead provokes a sizeable decline in gross inflows.\n- The decline in gross inflows is mainly driven by foreign investors."
    },
    {
      "heading": "Subject areas and keywords",
      "content": "- Subject: Balance of payments, Capital controls, Capital flows, Capital outflows, Econometric analysis, Industrial production, Production, Vector autoregression\n- Keywords: capital, Capital controls, capital flow restriction, Capital flows, Capital outflows, control tightening, Emerging economies, flow variable, Global, Industrial production, inflow control intensity, interest rate stabilization, outflow control index, outflow control restriction, outflow restriction, Vector autoregression, WP\n\n---\n\n Content in this bundle\n\n- wp1408\n  - wp1408 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - wp1408 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/31/effectiveness-of-capital-outflow-restrictions-41269"
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    "Authors: Christian Saborowski, Sarah Sanya, Hans Weisfeld, Juan Yepez",
    "Published: January 21, 2014",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484379752.001",
    "Sample: 37 emerging market economies during the period 1995-2010.",
    "Method: panel vector autoregression approach with interaction terms.",
    "Research question: whether a tightening of outflow restrictions helps reduce net capital outflows.",
    "A tightening of outflow restrictions is effective at reducing net capital outflows if at least one of the following conditions holds:",
    "When none of the three conditions is fulfilled, a tightening of restrictions fails to reduce net outflows and instead provokes a sizeable decline in gross inflows.",
    "The decline in gross inflows is mainly driven by foreign investors.",
    "Subject: Balance of payments, Capital controls, Capital flows, Capital outflows, Econometric analysis, Industrial production, Production, Vector autoregression",
    "Keywords: capital, Capital controls, capital flow restriction, Capital flows, Capital outflows, control tightening, Emerging economies, flow variable, Global, Industrial production, inflow control intensity, interest rate stabilization, outflow control index, outflow control restriction, outflow restriction, Vector autoregression, WP",
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