{
  "title": "Capital Controls and the Cost of Debt",
  "publication": "IMF Working Papers, June 9, 2017",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2017/06/09/capital-controls-and-the-cost-of-debt-44977",
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  "summary": "Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, we show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads.",
  "sections": [
    {
      "heading": "Summary and main finding",
      "content": "- Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, the authors show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads.\n- Restrictions on outflows do not show a robust significant effect on corporate bond spreads."
    },
    {
      "heading": "Authors and publication",
      "content": "- By Eugenia Andreasen, Martin Schindler, Patricio A Valenzuela\n- June 9, 2017\n- IMF Working Papers, Working Paper No. 2017/135"
    },
    {
      "heading": "Data and methodology (high-level)",
      "content": "- Analysis based on a panel data set for international corporate bonds and capital account restrictions across advanced and emerging economies.\n- Focus on the relationship between capital account restrictions (inflows and outflows) and corporate bond spreads."
    },
    {
      "heading": "Heterogeneities and channels",
      "content": "- The effect of capital controls on inflows is particularly strong for more financially constrained firms.\n- This finding establishes a novel channel through which capital controls affect economic outcomes: by increasing the cost of debt for financially constrained firms."
    },
    {
      "heading": "Key statistics and publication metadata",
      "content": "- Pages: 26\n- Volume: 2017\n- Issue: 135\n- DOI: https://doi.org/10.5089/9781484303313.001\n- Stock No: WPIEA2017135\n- ISBN: 9781484303313\n- ISSN: 1018-5941"
    },
    {
      "heading": "Keywords and subject tags",
      "content": "- Subject: Balance of payments, Bonds, Capital account, Capital controls, Corporate bonds, Financial institutions, Financial services, Yield curve\n- Keywords: bond, bond market market capitalization, Bonds, capital account, Capital account, capital account restriction, Capital controls, control, Corporate bonds, debt capital, firm, Global, market illiquidity, operating income, risk diversification, short-term debt, WP, Yield curve\n\nSource: IMF Working Paper \"Capital Controls and the Cost of Debt\", June 9, 2017.\n\n---\n\n Content in this bundle\n\n- Capital Controls and the Cost of Debt , WP/17/135, June 2017\n  - Capital Controls and the Cost of Debt , WP/17/135, June 2017 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Capital Controls and the Cost of Debt , WP/17/135, June 2017 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2017/06/09/capital-controls-and-the-cost-of-debt-44977"
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    "Authors: Eugenia Andreasen, Martin Schindler, Patricio A Valenzuela",
    "Published: June 9, 2017",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781484303313.001",
    "Using a panel data set for international corporate bonds and capital account restrictions in advanced and emerging economies, the authors show that restrictions on capital inflows produce a substantial and economically meaningful increase in corporate bond spreads.",
    "Restrictions on outflows do not show a robust significant effect on corporate bond spreads.",
    "By Eugenia Andreasen, Martin Schindler, Patricio A Valenzuela",
    "June 9, 2017",
    "IMF Working Papers, Working Paper No. 2017/135",
    "Analysis based on a panel data set for international corporate bonds and capital account restrictions across advanced and emerging economies.",
    "Focus on the relationship between capital account restrictions (inflows and outflows) and corporate bond spreads.",
    "The effect of capital controls on inflows is particularly strong for more financially constrained firms.",
    "This finding establishes a novel channel through which capital controls affect economic outcomes: by increasing the cost of debt for financially constrained firms.",
    "Pages: 26",
    "Volume: 2017",
    "Issue: 135",
    "DOI: https://doi.org/10.5089/9781484303313.001",
    "Stock No: WPIEA2017135",
    "ISBN: 9781484303313",
    "ISSN: 1018-5941",
    "Subject: Balance of payments, Bonds, Capital account, Capital controls, Corporate bonds, Financial institutions, Financial services, Yield curve",
    "Keywords: bond, bond market market capitalization, Bonds, capital account, Capital account, capital account restriction, Capital controls, control, Corporate bonds, debt capital, firm, Global, market illiquidity, operating income, risk diversification, short-term debt, WP, Yield curve",
    "**Capital Controls and the Cost of Debt , WP/17/135, June 2017**"
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