Dynamic Capital Mobility in Pacific Basin Developing Countries: Estimation and Policy Implications

November 1, 1991

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Format: Chicago

Hamid Faruqee. Dynamic Capital Mobility in Pacific Basin Developing Countries: Estimation and Policy Implications, (USA: International Monetary Fund, 1991) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper estimates empirically the changing degree of capital mobility in several Pacific Basin countries that have pursued financial liberalization in recent years. Tracing the impact of the liberalization process on the capital account, the paper also examines the implications for monetary policy operating in this changing economic environment. Empirical estimates support an overall finding of increased capital mobility in the region over the past decade. However, country experiences, with the exception of Singapore, have been more episodic--oscillating between periods of high and low financial openness--rather than uniform in regards to changing capital mobility.

Subject: Balance of payments, Capital controls, Currency markets, Exchange rates, Financial integration, Financial markets, Financial services, Foreign exchange, Interest rate parity

Keywords: ARCH estimation, Auto-regressive Conditional Heteroschedasticity, Capital controls, Capital mobility, Currency markets, Differentials vis-à-vis, Exchange rates, Financial integration, Interest rate parity, IRP deviation, Liberalization measure, Offsetting market response, Open economy, WP

Publication Details

Pages:

50
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1991/115
Stock No:

WPIEA1151991
ISBN:

9781451853834
ISSN:

1018-5941

Notes

Also published in Staff Papers, Vol. 39, No. 3, September 1992.

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