Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/39989 
Year of Publication: 
2010
Series/Report no.: 
Proceedings of the German Development Economics Conference, Hannover 2010 No. 41
Publisher: 
Verein für Socialpolitik, Ausschuss für Entwicklungsländer, Göttingen
Abstract: 
Countries' capital account policies might be contagious in the sense that domestic policies are driven by other countries' policies. A model of strategic interactions is developed to show that countries' best response to policy changes elsewhere consists in imitating this policy. Using a spatial econometric model, the hypothesis of policy interactions is tested in a large panel data set. The evidence shows that capital account policies are contemporaneously correlated across countries. Concerning fundamentals, the move to a fixed exchange rate regime and an increase in real world interest rates are correlated with the imposition of capital account restrictions.
Subjects: 
Capital Controls
Strategic Interaction
Panel Data Analysis
JEL: 
C23
F21
F3
F42
Document Type: 
Conference Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.