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Revisiting the effects of exchange and capital restrictions on trade

Author

Listed:
  • Campos, Rodolfo G.
  • Estefania-Flores, Julia
  • Furceri, Davide
  • Ostry, Jonathan D.
  • Timini, Jacopo

Abstract

This paper examines the effects of exchange and capital restrictions on trade and compares them with those associated with trade restrictions. Our main result is that capital account restrictions have large and statistically significant effects on trade flows. Such effects are smaller than those from trade restrictions, however. The effects of exchange and capital restrictions are larger for trade in goods, especially for agriculture and manufacturing, and smaller for trade in services.

Suggested Citation

  • Campos, Rodolfo G. & Estefania-Flores, Julia & Furceri, Davide & Ostry, Jonathan D. & Timini, Jacopo, 2024. "Revisiting the effects of exchange and capital restrictions on trade," Journal of Policy Modeling, Elsevier, vol. 46(4), pages 763-778.
    • Handle: RePEc:eee:jpolmo:v:46:y:2024:i:4:p:763-778
    DOI: 10.1016/j.jpolmod.2024.05.013
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    More about this item

    Keywords

    Trade restrictions; Capital restrictions; Structural gravity; Fragmentation;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration

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