CAPITAL CONTROLS INSTUMENTS IN DEVELOPING COUNTRIES

Iryna LABA

Анотація


Introduction. An era of intensive financial liberalization has nowadays been changed for the combination of free and regulated capital flows. More and more researchers deny an existence of strong correlation between the degree of capital account liberalization and economic growth, especially in emerging and developing countries.

Purpose. The purpose of this article is to analyze the mechanisms of the state regulation of international capital flows, often referred to as capital controls, in order to implement them into an effective macroeconomic policy in developing countries and emerging markets.

Methods. The methodology of the article is closely linked to its purpose. Methods of classification, generalization, comparative analysis and case study are used to analyse the most widely used capital control instruments, their advantages and disadvantages, similarities and differences between them

Results. The main measures and tools by which the state may influence the volume, structure and other parameters of capital inflow and outflow (especially short-term and volatile), – with the aim of stabilizing financial sector and economy as a whole, achieving sustainable economic growth and development, – are analyzed. There are numerous classifications of capital controls, but because of the variety of instruments a complete comprehensive list is hard to achieve. The article studies different instruments of quantitative and price-based state capital controls, evaluates their main characteristics as well as differences between them. It is noted that due to the weak institutions in developing countries, it is more appropriate for the latter to use price-based capital control measures that do not require intricate administration. Finally, possible implications of capital controls on monetary policy and certain macroeconomic indicators are stated.

Originality. The authors develop a detailed classification of capital controls, with their distribution by implementation tools; by types of flows, regulated; by the direction of capital flows; by level of regulation; as well as, by motives and purposes of regulation.

Conclusion. Experience of the global financial crises and the fact that countries implementing capital controls have been among the least affected by it shows that international community should not seek absolute liberalization of trade in financial assets, even in the long run. In order to take advantage of all the benefits of capital account liberalization, developing countries and emerging markets must first achieve a threshold level of institutional development. 


Ключові слова


international capital flows; liberalization; state regulation; developing countries; market-based instruments; administrative measures; monetary policy autonomy; effectiveness; financial engineering

Посилання


Korinek, A. (2011) The New Economics of Prudential Capital Controls: A Research Agenda. IMF Economic Review, Vol. 59, №3, 523–561 [in English].

Korinek, A. (2012) Capital Controls and Currency Wars, University of Maryland, mimeo, Available at: http:// www.korinek.com/papers [in English].

Jeanne, O., Subramanian, A., Williamson, J. (2012) Who Needs to Open the Capital Account? Washington: Peterson Institute for International Economics, 14 [in English].

Costinot, A. A., Lorenzoni, G., Werning, I. (2014) Theory of Capital Controls as Dynamic Terms-of-Trade, Manipulation Journal of Political Economy, University of Chicago Press, Vol. 122, №1, 77–128 [in English].

Grabel, I. and Chang, H. (2010). Why Capital Controls Are Not All Bad. Financial Times. [online] Available at: https://www.ft.com/content/4d0e3e34-e02f-11df-9482-00144feabdc0 [in English].

Boryshkevych, O. V. (2012) International capital flow and external indebtedness problems, Visnyk Natsionalnoho banku Ukrainy (Bulletin of the National Bank of Ukraine), № 10, 40-47 [in Ukraine].

Bozhechkova, A. V., Horunov, Е. L., Trunin, P. V. (2016) Research of the factors and effects of capital controls Available at: http://ssrn.com/abstract=2754066 [in Russian].

Hartwell, C. (2011). All That’s Old Is New Again: Capital Controls and the Macroeconomic Determinants of Entrepreneurship in Emerging Markets. SIEMS Issue Report. SKOLKOVO Institute for Emerging Market Studies, 2-7 [in English].

Magud, N., Reinhart, C. and Rogoff, K. (2005). Capital Controls: Myth and Reality – A Portfolio Balance Approach to Capital Controls. NBER Working Paper No. 16805. [online] IMF, 49. Available at: http://www.nber.org/papers/w16805 [in English].

Cordero, J. and Montecino, J. (2010). А Capital Controls and Monetary Policy in Developing Countries. Washington, DC: Center for Economic and Policy Research, 12-18 [in English].

Stiglitz, J., Ocampo, J., Spiegel, S., Ffrench-Davis, R. and Nayyar, D. (2006). Stability with Growth: Macroeconomics, Liberalization, and Development. 1st ed. Oxford: Oxford University Press, 352 [in English].

Edison, H. J. and Reinhart, C. M. (2000). Capital Controls During Financial Crises: The Case of Malaysia and Thailand. International Finance Working Paper No. 662, 38. Available at: http://www.federalreserve.gov/pubs/ifdp/2000/662/ ifdp662.pdf [in English].

Ariyoshi, A., Kirilenko, A., Ötker, I., Laurens, B., Kriljenko, J. and Habermeier, K. (2000). Capital Controls: Country Experiences with Their Use and Liberalization. IMF, Occasional Papers, 123. Available at: http://dx.doi.org/10.5089/9781557758743.084 [in English].

Neely, C. (2017). An Introduction to Capital Controls. Federal Reserve Bank of St. Louis Review, 81(6), 13-30 [in English].

Eichengreen, B., Mussa, M., Dell’Ariccia, G., Detragiache, E., Milesi-Ferretti, G. M., Tweedie, A. (1999). Liberalizing Capital Movements: Some Analytical Issues. IMF Economic Issue No. 17, 10 [in English].

Ocampo, J. (2008). Capital market liberalization and development. 1st ed. Oxford: Oxford University Press, 388 [in English].

Ostry, J., Ghosh, A., Habermeier, K., Chamon, M., Qureshi, M. and Reinhardt, D. (2010). Capital Inflows: The Role of Controls. IMF Staff Position Note SPN/10/04. Washington: IMF, 30 [in English].

Eichengreen, B. (1999). Toward a new international financial architecture. 1st ed. Washington, DC: Inst. for Internat. Economics, 216 [in English].


Повний текст: PDF

Посилання

  • Поки немає зовнішніх посилань.
Архів
2015 4 12   24 33
2016 1 2   3 4
2017 1 2 2 (Ч.2) 3 4 (Ч.1) 4 (Ч.2)
2018 1 2   3 4  
2019 1          

Користувач

Інформація

Зміст журналу

Перегляд

Мова