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Capital Flows, Capital Account Liberalisation and the Mediterranean Countries

Author

Listed:
  • Heather D. Gibson

    (Bank of Greece, Economic Research Department)

  • Nicholas T. Tsaveas

    (Bank of Greece, Economic Research Department)

  • Thomas Vlassopoulos

    (Bank of Greece, Economic Research Department)

Abstract

This paper examines questions related to possible capital account liberalisation in the Mediterranean countries. First, we provide an overview of the extent to which these countries have capital controls along with their exchange rate regimes and some basic macroeconomic aggregates. Second, we examine the case for capital account liberalisation, along with the prerequisites for successful liberalisation. Here we consider issues such as sequencing and possible benefits of synchronisation. Finally, we examine the experience with capital flows – both FDI and other capital flows. We explain these flows and use the past experience of these countries to draw some conclusions for the successful opening up of the capital account.

Suggested Citation

  • Heather D. Gibson & Nicholas T. Tsaveas & Thomas Vlassopoulos, 2006. "Capital Flows, Capital Account Liberalisation and the Mediterranean Countries," Working Papers 33, Bank of Greece.
    • Handle: RePEc:bog:wpaper:33
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    3. Chokri Zehri, 2017. "The Relaxing of Capital Controls and Rise of External Debt," American Journal of Economics and Business Administration, Science Publications, vol. 9(4), pages 61-70, December.
    4. Otmar Issing, 2006. "Europe's Hard Fix: The Euro Area," Working Papers 39, Bank of Greece.
    5. P. Swamy & George Tavlas, 2007. "The New Keynesian Phillips Curve and Inflation Expectations: Re-Specification and Interpretation," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 31(2), pages 293-306, May.
    6. Sekkat, Khalid, 2010. "Arab Economic Integration: Missing links," CEPR Discussion Papers 7807, C.E.P.R. Discussion Papers.
    7. Hans Genberg, 2006. "Exchange-rate arrangements and financial integration in East Asia: on a collision course?," International Economics and Economic Policy, Springer, vol. 3(3), pages 359-377, December.
    8. Alexandros E. Milionis, 2006. "An Alternative Definition of Market Efficiency and some Comments on its Empirical Testing," Working Papers 50, Bank of Greece.
    9. Anastasios P. Pappas, 2011. "The Short‐term Determinants of Capital Flows for a Small Open Economy: The Case of Greece," Review of Development Economics, Wiley Blackwell, vol. 15(4), pages 699-713, November.

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    More about this item

    Keywords

    capital account liberalisation; Mediterranean countries; capital flows;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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