Are Price-Based Capital Account Regulations Effective in Developing Countries?

The author evaluates the effectiveness of policy measures adopted by Chile and Colombia, aiming to mitigate the deleterious effects of pro-cyclical capital flows. In the case of Chile, according to his Generalized Method of Moments (GMM) analysis,...

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Main Author:	David, Antonio C.
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCELERATOR ADMINISTRATIVE CAPITAL ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS BALANCE SHEETS BANK LOANS BANKRUPTCY BOUNDED RATIONALITY BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT CONVERTIBILITY CAPITAL ACCOUNT POLICIES CAPITAL ACCOUNT RESTRICTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOW REVERSALS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMPARATIVE ANALYSIS COUNTRY RISK CURRENCY CRISES CURRENCY RISK CURRENT EXCHANGE RATE CYCLICAL COMPONENT DEPOSIT REQUIREMENT DEPOSIT REQUIREMENTS DEPOSITS DEVELOPING COUNTRIES DOMESTIC INTEREST RATE DOMESTIC INTEREST RATES DOMESTIC PRICES ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EXCHANGE RATE DEPRECIATION EXCHANGE RATE REGIME EXOGENOUS VARIABLES EXTERNAL DEBT EXTERNAL ENVIRONMENT EXTERNAL SHOCKS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL STATEMENTS FINANCIAL VOLATILITY FOREIGN ASSETS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN INTEREST RATE FOREIGN INTEREST RATES FOREIGN INVESTOR GDP GOVERNMENT EXPENDITURES GOVERNMENT SPENDING HIGH INTEREST RATES HIGH RESERVE REQUIREMENTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS LIBERALIZATION OF CAPITAL LIQUIDITY LONG TERM MACROECONOMIC EFFECTS MACROECONOMIC ENVIRONMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MACROECONOMICS MONETARY POLICY MORAL HAZARD NET CAPITAL NET CAPITAL FLOWS NET FLOWS NET FOREIGN ASSETS OPPORTUNITY COST PENSION FUNDS POLICY RESEARCH PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN DIFFERENTIALS RISK PREMIUM SHORT-TERM CAPITAL SHORT-TERM CAPITAL INFLOWS TRADE BALANCE
Online Access:	http://documents.worldbank.org/curated/en/2007/03/7471923/price-based-capital-account-regulations-effective-developing-countries http://hdl.handle.net/10986/7208

id	okr-10986-7208
recordtype	oai_dc
spelling	okr-10986-72082021-04-23T14:02:33Z Are Price-Based Capital Account Regulations Effective in Developing Countries? David, Antonio C. ACCELERATOR ADMINISTRATIVE CAPITAL ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS BALANCE SHEETS BANK LOANS BANKRUPTCY BOUNDED RATIONALITY BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT CONVERTIBILITY CAPITAL ACCOUNT POLICIES CAPITAL ACCOUNT RESTRICTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOW REVERSALS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMPARATIVE ANALYSIS COUNTRY RISK CURRENCY CRISES CURRENCY RISK CURRENT EXCHANGE RATE CYCLICAL COMPONENT DEPOSIT REQUIREMENT DEPOSIT REQUIREMENTS DEPOSITS DEVELOPING COUNTRIES DOMESTIC INTEREST RATE DOMESTIC INTEREST RATES DOMESTIC PRICES ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EXCHANGE RATE DEPRECIATION EXCHANGE RATE REGIME EXOGENOUS VARIABLES EXTERNAL DEBT EXTERNAL ENVIRONMENT EXTERNAL SHOCKS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL STATEMENTS FINANCIAL VOLATILITY FOREIGN ASSETS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN INTEREST RATE FOREIGN INTEREST RATES FOREIGN INVESTOR GDP GOVERNMENT EXPENDITURES GOVERNMENT SPENDING HIGH INTEREST RATES HIGH RESERVE REQUIREMENTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS LIBERALIZATION OF CAPITAL LIQUIDITY LONG TERM MACROECONOMIC EFFECTS MACROECONOMIC ENVIRONMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MACROECONOMICS MONETARY POLICY MORAL HAZARD NET CAPITAL NET CAPITAL FLOWS NET FLOWS NET FOREIGN ASSETS OPPORTUNITY COST PENSION FUNDS POLICY RESEARCH PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN DIFFERENTIALS RISK PREMIUM SHORT-TERM CAPITAL SHORT-TERM CAPITAL INFLOWS TRADE BALANCE The author evaluates the effectiveness of policy measures adopted by Chile and Colombia, aiming to mitigate the deleterious effects of pro-cyclical capital flows. In the case of Chile, according to his Generalized Method of Moments (GMM) analysis, capital controls succeeded in reducing net short-term capital flows but did not affect long-term flows. As far as Colombia is concerned, the regulations were capable of affecting total flows and also long-term ones. In addition, the co-integration models indicate that the regulations did not have a direct effect on the real exchange rate in the Chilean case. Nonetheless, the model used for Colombia did detect a direct impact of the capital controls on the real exchange rate. Therefore, the results do not seem to support the idea that those regulations were easily evaded. 2012-06-05T22:18:10Z 2012-06-05T22:18:10Z 2007-03 http://documents.worldbank.org/curated/en/2007/03/7471923/price-based-capital-account-regulations-effective-developing-countries http://hdl.handle.net/10986/7208 English Policy Research Working Paper; No. 4175 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Latin America & Caribbean Colombia Chile
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCELERATOR ADMINISTRATIVE CAPITAL ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS BALANCE SHEETS BANK LOANS BANKRUPTCY BOUNDED RATIONALITY BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT CONVERTIBILITY CAPITAL ACCOUNT POLICIES CAPITAL ACCOUNT RESTRICTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOW REVERSALS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMPARATIVE ANALYSIS COUNTRY RISK CURRENCY CRISES CURRENCY RISK CURRENT EXCHANGE RATE CYCLICAL COMPONENT DEPOSIT REQUIREMENT DEPOSIT REQUIREMENTS DEPOSITS DEVELOPING COUNTRIES DOMESTIC INTEREST RATE DOMESTIC INTEREST RATES DOMESTIC PRICES ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EXCHANGE RATE DEPRECIATION EXCHANGE RATE REGIME EXOGENOUS VARIABLES EXTERNAL DEBT EXTERNAL ENVIRONMENT EXTERNAL SHOCKS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL STATEMENTS FINANCIAL VOLATILITY FOREIGN ASSETS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN INTEREST RATE FOREIGN INTEREST RATES FOREIGN INVESTOR GDP GOVERNMENT EXPENDITURES GOVERNMENT SPENDING HIGH INTEREST RATES HIGH RESERVE REQUIREMENTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS LIBERALIZATION OF CAPITAL LIQUIDITY LONG TERM MACROECONOMIC EFFECTS MACROECONOMIC ENVIRONMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MACROECONOMICS MONETARY POLICY MORAL HAZARD NET CAPITAL NET CAPITAL FLOWS NET FLOWS NET FOREIGN ASSETS OPPORTUNITY COST PENSION FUNDS POLICY RESEARCH PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN DIFFERENTIALS RISK PREMIUM SHORT-TERM CAPITAL SHORT-TERM CAPITAL INFLOWS TRADE BALANCE
spellingShingle	ACCELERATOR ADMINISTRATIVE CAPITAL ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS BALANCE SHEETS BANK LOANS BANKRUPTCY BOUNDED RATIONALITY BUSINESS CYCLE CAPITAL ACCOUNT CAPITAL ACCOUNT CONVERTIBILITY CAPITAL ACCOUNT POLICIES CAPITAL ACCOUNT RESTRICTIONS CAPITAL CONTROLS CAPITAL FLOW CAPITAL FLOW REVERSALS CAPITAL FLOWS CAPITAL GAINS CAPITAL INFLOW CAPITAL INFLOWS CAPITAL MARKETS CAPITAL OUTFLOWS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMPARATIVE ANALYSIS COUNTRY RISK CURRENCY CRISES CURRENCY RISK CURRENT EXCHANGE RATE CYCLICAL COMPONENT DEPOSIT REQUIREMENT DEPOSIT REQUIREMENTS DEPOSITS DEVELOPING COUNTRIES DOMESTIC INTEREST RATE DOMESTIC INTEREST RATES DOMESTIC PRICES ECONOMETRIC ANALYSIS ECONOMETRICS ECONOMIC ACTIVITY ELASTICITY EMERGING ECONOMIES EMERGING MARKETS EMPIRICAL EVIDENCE ENDOGENOUS VARIABLES EXCHANGE RATE DEPRECIATION EXCHANGE RATE REGIME EXOGENOUS VARIABLES EXTERNAL DEBT EXTERNAL ENVIRONMENT EXTERNAL SHOCKS FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL INTEGRATION FINANCIAL INTERMEDIARIES FINANCIAL LIBERALIZATION FINANCIAL MARKET FINANCIAL STATEMENTS FINANCIAL VOLATILITY FOREIGN ASSETS FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN EXCHANGE FOREIGN INTEREST RATE FOREIGN INTEREST RATES FOREIGN INVESTOR GDP GOVERNMENT EXPENDITURES GOVERNMENT SPENDING HIGH INTEREST RATES HIGH RESERVE REQUIREMENTS INTEREST RATE INTEREST RATE DIFFERENTIALS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL FLOWS INTERNATIONAL CAPITAL MARKETS LIBERALIZATION OF CAPITAL LIQUIDITY LONG TERM MACROECONOMIC EFFECTS MACROECONOMIC ENVIRONMENT MACROECONOMIC PERFORMANCE MACROECONOMIC POLICY MACROECONOMIC VOLATILITY MACROECONOMICS MONETARY POLICY MORAL HAZARD NET CAPITAL NET CAPITAL FLOWS NET FLOWS NET FOREIGN ASSETS OPPORTUNITY COST PENSION FUNDS POLICY RESEARCH PRIVATE CAPITAL PRIVATE CAPITAL FLOWS PRIVATE SECTOR REAL EXCHANGE REAL EXCHANGE RATE REAL EXCHANGE RATE APPRECIATION REAL EXCHANGE RATE OVERVALUATION REAL EXCHANGE RATES RESERVE RESERVE REQUIREMENT RESERVE REQUIREMENTS RETURN DIFFERENTIALS RISK PREMIUM SHORT-TERM CAPITAL SHORT-TERM CAPITAL INFLOWS TRADE BALANCE David, Antonio C. Are Price-Based Capital Account Regulations Effective in Developing Countries?
geographic_facet	Latin America & Caribbean Colombia Chile
relation	Policy Research Working Paper; No. 4175
description	The author evaluates the effectiveness of policy measures adopted by Chile and Colombia, aiming to mitigate the deleterious effects of pro-cyclical capital flows. In the case of Chile, according to his Generalized Method of Moments (GMM) analysis, capital controls succeeded in reducing net short-term capital flows but did not affect long-term flows. As far as Colombia is concerned, the regulations were capable of affecting total flows and also long-term ones. In addition, the co-integration models indicate that the regulations did not have a direct effect on the real exchange rate in the Chilean case. Nonetheless, the model used for Colombia did detect a direct impact of the capital controls on the real exchange rate. Therefore, the results do not seem to support the idea that those regulations were easily evaded.
format	Publications & Research :: Policy Research Working Paper
author	David, Antonio C.
author_facet	David, Antonio C.
author_sort	David, Antonio C.
title	Are Price-Based Capital Account Regulations Effective in Developing Countries?
title_short	Are Price-Based Capital Account Regulations Effective in Developing Countries?
title_full	Are Price-Based Capital Account Regulations Effective in Developing Countries?
title_fullStr	Are Price-Based Capital Account Regulations Effective in Developing Countries?
title_full_unstemmed	Are Price-Based Capital Account Regulations Effective in Developing Countries?
title_sort	are price-based capital account regulations effective in developing countries?
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2007/03/7471923/price-based-capital-account-regulations-effective-developing-countries http://hdl.handle.net/10986/7208
_version_	1764401640170848256

Are Price-Based Capital Account Regulations Effective in Developing Countries?

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