IDEAS home Printed from https://ideas.repec.org/a/eee/jimfin/v145y2024ics0261560624000780.html
   My bibliography  Save this article

Capital controls and capital flows: Do controls reduce the size of flows?

Author

Listed:
  • Chen, Gao

Abstract

This paper examines the effectiveness of capital controls in limiting the size of capital outflows based on a large panel data that covers 98 countries from 1995 to 2015. Results in this paper show that imposing comprehensive capital controls that put restrictions on almost all assets categories is the necessary condition to stem outflows. In addition, comprehensive capital controls can also be imposed temporarily to reduce outflows even though a country had a fairly open capital account in the past. This provides policy rationale for using capital controls as a temporary tool to alter outflows when needed. Lastly, on targeting a particular type of asset flows, this paper finds that countries are able to reduce banking flows by closing assets channels that affect banking flows only.

Suggested Citation

  • Chen, Gao, 2024. "Capital controls and capital flows: Do controls reduce the size of flows?," Journal of International Money and Finance, Elsevier, vol. 145(C).
    • Handle: RePEc:eee:jimfin:v:145:y:2024:i:c:s0261560624000780
    DOI: 10.1016/j.jimonfin.2024.103091
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0261560624000780
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jimonfin.2024.103091?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    JEL classification:

    • F3 - International Economics - - International Finance
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jimfin:v:145:y:2024:i:c:s0261560624000780. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30443 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.