Capital Mobility and Economic Performance: Are Emerging Economies Different?

Edwards, Sebastián

doi:10.3386/w8076

Cited by 259 publications

(253 citation statements)

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“…This way of defining the threshold for the exchange rate is in line with the one adopted by Shambaugh (2004). 37 See Chinn and Ito (2008), Edison and Warnock (2001), Edwards (2001), Edison et al (2002), and Kose et al (2006) for discussions and comparisons of various measures on capital restrictions. 38 This index is described in greater detail in Chinn and Ito (2008).…”

Section: Financial Openness/integration (Kaopen)mentioning

confidence: 87%

“…Figure 5 shows that the number of crises has been on the decline trend since the mid-1980s. 1955-19701971-19801981-19901991-20002001-07 1991-2000 Mean of the Duration of "Excessive Underperformance" 1955-1970 1971-1980 1981-1990 1991-2000 2001-07 1991-2000 1955-1970 1971-1980 1981-1990 1991-2000 2001-07 Mean of the Duration of "Excessive Underperformance" 1955-1970 1971-1980 1981-1990 1991-2000 2001-07 26 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 year Number of 'crises', IDC Number of 'crises', LDC Number of 'excessive underperformance, 1955-2007 Source: Authors' calculations.…”

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confidence: 99%

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The Financial Crisis, Rethinking of the Global Financial Architecture, and the Trilemma

Aizenman¹,

Chinn²,

Ito³

2012

Monetary and Currency Policy Management in Asia

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Asian Development Bank InstituteThe Working Paper series is a continuation of the formerly named Discussion Paper series; the numbering of the papers continued without interruption or change. ADBI's working papers reflect initial ideas on a topic and are posted online for discussion. ADBI encourages readers to post their comments on the main page for each working paper (given in the citation below). Some working papers may develop into other forms of publication. This paper was prepared for the ADBI conference: "Global Financial Crisis: Macroeconomic Policy Issues" on 28-29July 2009. The authors thank Yung Chul Park, Masahiro Kawai, Shinji Takagi, Ajay Shah, Shin-ichi Fukuda, and the participants at the conference for their useful comments and suggestions. The financial support of faculty research funds of the UCSC, UW-Madison, and PSU is gratefully acknowledged. This paper was drafted when Mr. Ito was visiting ADBI; thanks go to ADBI for its hospitality and financial support.The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of ADBI, the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.Asian Development Bank Institute Kasumigaseki Building 8F 3-2-5 Kasumigaseki, Chiyoda-ku Tokyo 100-6008, JapanTel:+81-3-3593-5500 Fax:+81-3-3593-5571 URL:www.adbi.org E-mail: info@adbi.org AbstractThis paper extends our previous paper (Aizenman, Chinn, and Ito 2008) and explores some of the unexplored questions. First, we examine the channels through which the trilemma policy configurations affect output volatility. Secondly, we investigate how trilemma policy configurations affect the output performance of the economies under severe crisis situations. Thirdly, we look into how trilemma configurations have evolved in the aftermath of economic crises in the past. We find that trilemma policy configurations and external finances affect output volatility mainly through the investment channel. While a higher degree of exchange rate stability could stabilize the real exchange rate movement, it could also make investment volatile, though the volatility-enhancing effect of exchange rate stability on investment can be cancelled by holding hi...

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Section: Financial Openness/integration (Kaopen)mentioning

confidence: 87%

mentioning

confidence: 99%

The Financial Crisis, Rethinking of the Global Financial Architecture, and the Trilemma

Aizenman¹,

Chinn²,

Ito³

2012

Monetary and Currency Policy Management in Asia

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“…Most recently, Miniane (2004) constructed a set of indices to measure the intensity of capital controls, based on an approach akin to Johnston et al, but extending the data back to 1983 for 34 countries. 11 See Edison and Warnock (2001), Edwards (2001), and Edison et al (2002) for discussions and comparisons of RIP) approach such as Cheung, et al (2003) and Montiel (1995) or those on deviations from no arbitrage profits conditions such as De Gregorio (1998). Researchers often refer to these price-based measures as de facto measures on financial integration.…”

Section: Arrangements and Exchange Restrictions (Areaer)mentioning

confidence: 99%

“…Many researchers have tried to capture the complexity of real-world capital controls, with varying degrees of success, and varying degrees of coverage. For reviews and comparisons of various measures on capital controls, refer to Edwards (2001), Edison et al (2002) and Eichengreen (2002). ).…”

Section: Construction Of Kaopenmentioning

confidence: 99%

Financial development and financial liberalization in Asia: Thresholds, institutions and the sequence of liberalization

Ito

2006

The North American Journal of Economics and Finance

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I investigate whether financial openness leads to financial development after controlling for the level of legal/institutional development, and whether trade opening is a precondition for financial opening, focusing on Asia. Utilizing a panel encompassing 87 less developed countries over the period 1980 to 2000, I find that a higher level of financial openness spurs equity market development only if a threshold level of legal development has been attained, a condition prevalent particularly among emerging market Asian countries. On the issue of sequencing, trade openness is found to be a prerequisite for successful inducement of financial development via capital account liberalization.JEL Classification: F36, F43, G28

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“…Consistent with this, Edwards (2001) finds evidence that capital account liberalization boosts growth in high income countries, but slows it in low income countries. Those who, relying upon textbook economics, claim that the free flow of international savings is Pareto welfare-improving ignore this basic asymmetry.…”

Section: % Gdpmentioning

confidence: 69%

Understanding Financial Globalization in International Political Economy

Walter¹

2005

Globalizing International Political Economy

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Capital Mobility and Economic Performance: Are Emerging Economies Different?

Cited by 259 publications

References 22 publications

The Financial Crisis, Rethinking of the Global Financial Architecture, and the Trilemma

The Financial Crisis, Rethinking of the Global Financial Architecture, and the Trilemma

Financial development and financial liberalization in Asia: Thresholds, institutions and the sequence of liberalization

Understanding Financial Globalization in International Political Economy

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