Testing Alternative Explanations of Capital Control Liberalization
Bibliographic Data
| ID | 4934252 |
|---|---|
| Authors | Quan Li (0000-0003-4734-7709, Pennsylvania State University), Dale L Smith (0000-0003-0854-9973, Smiths Detection (Canada)) |
| Year | 2002 |
| Volume | 19 |
| Issue | 1 |
| Pages | 28-52 |
| Publication date | 2002-03-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Review of Policy Research (JOURNAL) |
| Journal identifiers | ISSN: 1541-132X • E-ISSN: 1541-1338 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/j.1541-1338.2002.tb00228.x |
| OpenAlex | W1975230713 |
| Language | EN |
| Citations received | 4 |
| References cited | 15 |
The literature on why restrictions over capital flows have been liberalized is filled with alternative causal stories (the pluralist, statist and systemic model, and economic explanations). In this article, we provide a test of these models of capital control liberalization within the context of 18 OECD countries from 1967 to 1995. We have avoided the usual practice of aggregating multiple governments in one country within one year into one country-year observation, and use the country-year-government as the unit of analysis instead to correctly test the relationship between government characteristics and liberalization policy. We find that when the government considers lifting or imposing restrictions over capital flows, it responds to both systemic pressures and the key supporters of free capital flows. Governments also consider the current account balance and are heavily influenced by the prior policy choice regarding restrictions on capital transactions. We fail to find support for such explanations as the impact of government ideology, government strength, and central bank independence
Capital account · Capital control · Capital flows · Economic system · Economics · Ideology · International economics · Liberalization · Macroeconomics · Market economy · Political science · Politics · Public economics · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · Law · Local Government Finance and Decentralization
Measuring the Independence of Central Banks and Its Effect on Policy Outcomes
The Penn World Table (Mark 5)
Central Bank Independence and Macroeconomic Performance
The dynamics of financial globalization
Party government in 20 democracies
Phoenix Risen
The Obsolescence of Capital Controls
Capital Mobility and State Autonomy
Domestic and Systemic Determinants of Capital Controls in the Developed and Developing World
Financial Interdependence and the State
Capital mobility, trade, and the domestic politics of economic policy
Invested interests
The political economy of financial internationalization in the developing world
The Origins of Financial Openness
The Correlates of Change in International Financial Regulation
| Citations per year | 0.17 |
|---|---|
| Citation span | 2003 - 2013 (11) |
| Highly cited | No |