Search Results

You are looking at 1 - 10 of 50 items for :

  • "capital outflow restriction" x
Clear All
Christian Saborowski, Sarah Sanya, Hans Weisfeld, and Juan Yepez
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.
Christian Saborowski, Sarah Sanya, Hans Weisfeld, and Juan Yepez

. Since outflow restrictions tend to be introduced in response to rising capital outflows, a failure to allow for endogeneity in the regressions would likely bias the results toward depicting restrictions as less effective than they are. Box 1. Selected Country Experiences with Outflow Restrictions This Box examines the experiences of Thailand (1997), Malaysia (1998), the Ukraine (2008–09) and Iceland (2008) with imposing or tightening capital outflow restrictions during crisis episodes. In all cases the desire of the authorities to reduce capital outflows and

Mr. Dong He, Annamaria Kokenyne, Xavier Lavayssière, Ms. Inutu Lukonga, Nadine Schwarz, Nobuyasu Sugimoto, and Jeanne Verrier
Capital flow management measures (CFMs) can be part of the broader policy toolkit to help countries reap the benefits of capital flows while managing the associated risks. Their implementation typically requires that financial intermediaries verify the nature of transactions and the identities of transacting parties but is facing the rising challenge of crypto assets. Indeed, crypto assets have become a significant instrument for payments and speculative investments in some countries. They can be traded pseudonymously and held without identification of the residency of the asset holder. Many crypto service providers operate across borders, making supervision and enforcement by national authorities more difficult. The challenges posed by the attributes of crypto assets are compounded by gaps in the legal and regulatory frameworks. This paper aims to discuss how crypto assets could impact the effectiveness of CFMs from a structural and longer-term perspective. To preserve the effectiveness of CFMs against crypto-related challenges, policymakers need to consider a multifaceted strategy whose essential elements include clarifying the legal status of crypto assets and ensuring that CFM laws and regulations cover them; devising a comprehensive, consistent, and coordinated regulatory approach to crypto assets and applying it effectively to CFMs; establishing international collaborative arrangements for supervision of crypto assets; addressing data gaps and leveraging technology (regtech and suptech) to create anomaly-detection models and red-flag indicators that will allow for timely risk monitoring and CFM implementation.
Christian Saborowski, Sarah Sanya, Hans Weisfeld, and Juan Yepez

Front Matter Page Strategy, Policy, and Review Department Contents I. Introduction II. Data and Empirical Approach III. Estimation Results IV. Robustness V. Conclusion References Tables 1. Country Sample 2. Definitions and Sources of Variables 3. Summary Statistics of Selected Variables, 1995–2010 4. Outflow Restrictions (Schindler), 1995 and 2010 5. Selected Characteristics of Countries that use Outflow Controls Figures 1. Number of Emerging Market Countries Tightening Capital Outflow Restrictions, 1996–2010 2

Mr. Dong He, Annamaria Kokenyne, Xavier Lavayssière, Ms. Inutu Lukonga, Nadine Schwarz, Nobuyasu Sugimoto, and Jeanne Verrier

Adoption Box 1. The Crypto-Asset Ecosystem Box 2. Types of CFMs and Their Objectives Figure 1. Trends in Crypto Assets Figure 2. Financial Account Restrictiveness Index (FARI), by Income Group and Year Figure 3. Decentralization and Ability to Regulate Figure 4. How Mixers Create Untraceable Transactions Figure 5. Crypto Assets as Vehicles to Circumvent Capital Outflow Restrictions Table A2.1. Drivers of Crypto-Assets Adoption (Proxy: Trading Volumes) Table A2.2. Drivers of Crypto-Assets Adoption (Proxy: Google Search Trends)

International Monetary Fund

; Sidra Rehman; Longmei Zhang Working Paper 14/3 Economic Growth and Government Spending in Saudi Arabia: An Empirical Investigation Saad A. Alshahrani; Ali J. Alsadiq Working Paper 14/5 Resource Blessing, Revenue Curse? Domestic Revenue Effort in Resource-Rich Countries Ernesto Crivelli; Sanjeev Gupta Working Paper 14/6 Reforming Capital Taxation in Italy Luc Eyraud Working Paper 14/7 Reforming Tax Expenditures in Italy: What, Why, and How? Justin Tyson Working Paper 14/8 Effectiveness of Capital Outflow Restrictions