Opening the Capital Account of Transition Economies: How Much and How Fast

Daniel Daianu () and Radu Vranceanu

No 511, William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan

Abstract: In the late eighties, many developing countries followed the example of the most advanced countries and opened their capital account (K.A.) in an attempt to reap new gains from increased integration with the world economy. By 2000, after the wave of financial and currency crises that hurt the global economy in the last decade, enthusiasm about K.A. liberalization has much faded. Firstly, the relationship between development and capital account liberalization did not come out to be as solid as initially expected; secondly, greater capital mobility has brought about increased global financial instability. New thinking in international economics calls for proper sequencing in opening the K.A.: liberalization should proceed in step with progress in macroeconomic stability, structural reform and creation of a sound internal financial system. In this paper, we analyze to what extent and at what pace should transition economies carry out the K.A. liberalization process.

Keywords: capital mobility; capital outflows; financial instability; transition (search for similar items in EconPapers)
JEL-codes: F21 F32 F36 P33 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2002-09-22
New Economics Papers: this item is included in nep-cba, nep-ifn, nep-pke and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp511.pdf
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.wdi.umich.edu/files/Publications/WorkingPapers/wp511.pdf [302 Found]--> https://wdi.umich.edu/files/Publications/WorkingPapers/wp511.pdf)

Related works:
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:wdi:papers:2002-511

Access Statistics for this paper

More papers in William Davidson Institute Working Papers Series from William Davidson Institute at the University of Michigan 724 E. University Ave, Wyly Hall 1st Flr, Ann Arbor MI 48109. Contact information at EDIRC.
Bibliographic data for series maintained by WDI ().