 Effects of Capital Flow Liberalization: What is the Evidence from Recent Experiences of Emerging Market Economies?Tahsin Saadi Sedik () and Tao Sun No 2012/275, IMF Working Papers from International Monetary Fund Abstract: This paper analyzes the experiences of emerging market economies (EMEs) that have liberalized capital flows over the past 15 years with respect to macroeconomic performance and risks to financial stability. The results of the panel data regressions indicate that greater openness to capital flows is associated with higher growth, gross capital flows, and equity returns and with lower inflation and bank capital adequacy ratios. The effects vary depending on thresholds. As a potential application of these findings, the paper explores the possible effects of liberalization on China by applying the coefficients of explanatory variables to the corresponding variables of China in 2012–16. Keywords: WP; liberalization; equity liberalization index; liberalization of capital flow; Capital flow liberalization; emerging market economies; China; dynamic panel data specification; simulations; flow liberalization; restrictiveness index; interest rate liberalization; further liberalization; liberalization in China; Capital account liberalization; Capital flows; Capital adequacy requirements; Financial sector risk; Real interest rates; Global (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2012/275 Ordering information: This working paper can be ordered from 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. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.