Capital account liberalization, free long-term capital flows, financial crises and economic development

Ajit Singh

Working Papers from Centre for Business Research, University of Cambridge

Abstract: The first part of this paper examines the theoretical and empirical case for full capital account liberalisation in developing countries(DCs) and finds it unconvincing. Indeed, analysis and evidence presented here point to a compelling case against it. The second part considers the liberalisation of only the long-term capital account, particularly FDI - a form of in-flow favoured by most economists. This paper, however, argues that even FDI, if unregulated, may do more harm than good. It is suggested that DCs should, therefore, resist the new advanced country proposals for a multilateral agreement on FDI.

Keywords: Capital account liberalisation; FDI (search for similar items in EconPapers)
JEL-codes: F2 F3 (search for similar items in EconPapers)
Date: 2002-12
New Economics Papers: this item is included in nep-ifn, nep-pke and nep-rmg
Note: PRO-2
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (14)

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Related works:
Chapter: Capital account liberalisation, free long-term capital flows, financial crises and economic development (2003)
Journal Article: Capital Account Liberalization, Free Long-Term Capital Flows, Financial Crises and Economic Development (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:cbr:cbrwps:wp245

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