Malaysian Capital Controls: Macroeconomics and Institutions

Natalia Tamirisa, Simon Johnson, Kalpana Kochhar and Todd Mitton

No 2006/051, IMF Working Papers from International Monetary Fund

Abstract: We analyze the capital controls imposed in Malaysia in September 1998. In macroeconomic terms, these controls neither yielded major benefits nor were costly. At the same time, the stock market interpreted the capital controls (and associated events) as favoring firms with stronger political connections, and some connected firms reportedly received advantages immediately following the crisis. Analysis of financial accounts indicates that connected firms outperformed unconnected firms before the 1997-98 crisis but not afterward. After the crisis, connected firms were either not supported as much as the market had expected or the benefits they received were not manifest in their published accounts.

Keywords: WP; capital control; PMC firm; stockbroking company; unconnected firm (search for similar items in EconPapers)
Pages: 51
Date: 2006-02-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=18922 (application/pdf)

Related works:
Chapter: Malaysian Capital Controls: Macroeconomics and Institutions (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2006/051

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().