Effectiveness of Capital Outflow Restrictions

Effectiveness of Capital Outflow Restrictions
Author: Christian Saborowski
Publisher: International Monetary Fund
Total Pages: 34
Release: 2014-01-21
Genre: Business & Economics
ISBN: 1484379772

This paper examines the effectiveness of capital outflow restrictions in a sample of 37 emerging market economies during the period 1995-2010, using a panel vector autoregression approach with interaction terms. Specifically, it examines whether a tightening of outflow restrictions helps reduce net capital outflows. We find that such tightening is effective if it is supported by strong macroeconomic fundamentals or good institutions, or if existing restrictions are already fairly comprehensive. When none of these three conditions is fulfilled, a tightening of restrictions fails to reduce net outflows as it provokes a sizeable decline in gross inflows, mainly driven by foreign investors.

Liberalizing Capital Flows and Managing Outflows - Background Paper

Liberalizing Capital Flows and Managing Outflows - Background Paper
Author: International Monetary Fund. Monetary and Capital Markets Department
Publisher: International Monetary Fund
Total Pages: 60
Release: 2012-03-14
Genre: Business & Economics
ISBN: 1498340849

Liberalization of capital flows can benefit both source and recipient countries by improving resource allocation, reducing financing costs, increasing competition and accelerating the development of domestic financial systems. The empirical evidence, however, is mixed on the benefits, and it suggests that countries benefit most when they meet certain thresholds related to institutional and financial development. The principal cost of capital flow liberalization stems from the economic instability brought on by volatile capital flows. In extreme cases, sudden stops or reversals in capital inflows can trigger financial crises followed by prolonged periods of weak growth.

Stellar Jets and Bipolar Outflows

Stellar Jets and Bipolar Outflows
Author: L. Errico
Publisher: Springer Science & Business Media
Total Pages: 444
Release: 2012-12-06
Genre: Science
ISBN: 9401119244

In the last few years great improvements in the study of stellar jets and bipolar outflows have been achieved, both observationally and theoretically. High resolution observations at various frequencies (radio, IR, optical and X-ray) of these features in different types of objects have shown a large variety of morphologies at all scales often revealing contrasting symmetries which do not allow straightforward kinematic interpretations valid for all cases. In particular, at present, it seems very difficult to give a statistical definition of what the "standard properties" of jets and bipolar outflows are. On the theoretical side, the identification of physical processes capable of producing the observed rich morphological variety of jets and bipolar outflows and supporting them over long lifetimes is still controversial. Furthermore several models are actively discussed in an attempt of reaching a complete understanding of the phenomenon. The workshop provided an unique opportunity for both observers and theoreticians to gather together and produce an updated and exhaustive picture of the field. In addition the meeting has been enriched by the presentation of some works on jets in external galaxies. This topic was focused on what people working on stellar jets could learn from colleagues working on extragalactic jets and vice versa. Invited papers were prepared with the aim of giving the state of the art about scientific subjects; contributed papers and some selected poster papers presented, on the contrary, very recent results in the various fields.

Mass Outflows from Stars and Galactic Nuclei

Mass Outflows from Stars and Galactic Nuclei
Author: Luciana Bianchi
Publisher: Springer Science & Business Media
Total Pages: 427
Release: 2012-12-06
Genre: Science
ISBN: 9400929412

The objective of this workshop was to put together observational and theoretical works on outflows from different kinds of astrophysical objects, occurring on different scales and at various evolutionary phases, and to discuss the impact of observations from future space missions. For the stars, we thought to follow throughout the evolution the relevance (rates and dynamical rrodes) of the mass loss phenomenon, e. g. to explain how and when massive stars loose most of their ini tial mass to end up with typical WD masses. The observations of the solar wind were included for being a unique case where the origin and propagation of the outflow can be resolved. We thought that the comparison with similar phenomena occurring in galactic outflows would be fruitful, as demonstrated by recent works on galactic winds and jets. The interest of having this workshop in Torino came because there are groups in this area, at the Astronomical Observatory and at the Institute of Physics of the University, involved in the theoretical and observational studies of outflows from astrophysical objects. The members of the Scientific Organizing Conmi ttee were: V. Castellani, C. Cesarski, P. Conti, A. Ferrari, A. Gabriel, M. Grewing, Y. Kondo, H. Lamers, V. Manno, M. Rees and R. Schilizzi. The Local Organizing Conmi ttee was: L. Bianchi, G. Massone and E. Antonucci. During the workshop the following topics were treated: the solar wind, the mass loss from cool stars and from hot stars (m. s.

Do Inflows or Outflows Dominate? Global Implications of Capital Account Liberalization in China

Do Inflows or Outflows Dominate? Global Implications of Capital Account Liberalization in China
Author: Mr.Tamim Bayoumi
Publisher: International Monetary Fund
Total Pages: 32
Release: 2013-08-28
Genre: Business & Economics
ISBN: 1475532156

This paper assesses the implications of Chinese capital account liberalization for capital flows. Stylized facts from capital account liberalization in advanced and large emerging market economies illustrate that capital account liberalization has historically generated large gross capital in- and outflows, but the direction of net flows has depended on many factors. An econometric portfolio allocation model finds that capital controls significantly dampen cross-border portfolio asset holdings. The model also suggests that capital account liberalization in China may trigger net portfolio outflows as large domestic savings seek to diversify abroad.

Capital Controls on Outflows: New Evidence and a Theoretical Framework

Capital Controls on Outflows: New Evidence and a Theoretical Framework
Author: Roberto Chang
Publisher: International Monetary Fund
Total Pages: 83
Release: 2024-07-26
Genre:
ISBN:

We study capital controls on outflows (CCOs) in situations of macroeconomic and financial distress. We present novel empirical evidence indicating that CCO implementation is associated with crises and declines in GDP growth. We then develop a theoretical framework that is consistent with such empirical findings and also yields policy and welfare lessons. The theory features costly coordination failures by foreign investors which can sometimes be avoided by suitably tailored CCOs. The benefits of CCOs as coordination devices can make them optimal even if CCOs entail deadweight losses; if the latter are large, however, CCOs are detrimental for welfare. We show that optimal CCOs can suffer from time inconsistency, and also how political opportunism may limit CCO policy. Hence government credibility and reputation building emerge as critical for the successful implementation of CCOs.