Global Imbalances and Capital Account Openness: An Empirical Analysis

Jamel Saadaoui

Post-Print from HAL

Abstract: We investigate if capital account openness has played a major role in the evolution of global imbalances on the period 1980-2003. We estimate, with panel regression techniques, the impact of capital account openness on medium run current account imbalances for industrialized and emerging countries by using a de jure measure of capital account openness (the Chinn-Ito index of capital account openness, 2002, 2006) and a de facto measure of capital account openness (the gross foreign assets measured as the sum of foreign assets and foreign liabilities). By increasing the opportunities of overseas investments, the relative capital account openness has had positive impact on medium run current account balances of industrialized countries (because of downward pressures on domestic investment rates). Conversely, the relative capital account openness has had negative impact on medium run current account balances of emerging countries (because of upward pressures on domestic investment rates). The evolutions of domestic and foreign capital account openness have allowed increasing medium run current account balances in absolute value during this period.

Keywords: Global Imbalances; Capital Account Openness; Chinn-Ito index (search for similar items in EconPapers)
Date: 2013
Note: View the original document on HAL open archive server: https://hal.science/hal-02169129v1
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published in SSRN : Social Science Research Network, 2013, 143, pp.23-35. ⟨10.2139/ssrn.1961328⟩

Downloads: (external link)
https://hal.science/hal-02169129v1/document (application/pdf)

Related works:
Working Paper: Global Imbalances and Capital Account Openness: an Empirical Analysis (2013)
Working Paper: Global Imbalances and Capital Account Openness: an Empirical Analysis (2013)
Working Paper: Global Imbalances and Capital Account Openness: an Empirical Analysis (2011)
Working Paper: Global imbalances and capital account openness: an empirical analysis (2011)
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:hal:journl:hal-02169129

DOI: 10.2139/ssrn.1961328

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().