GATS Disciplines on Capital Transfers and Short-term Capital Inflows: Time for Change?

Controls on Capital Inflows: Do they Work?∗

This paper analyzes the effectiveness of controls on capital inflows. In particular, we analyze in great detail the Chilean experience with the use of the unremunerated reserve requirement. We examine the effects of the controls applied in Chile in 1991–98 on interest rates, real exchange rate, and the volume and composition of capital inflows. The effects are elusive and it is difficult to pin...

Capital inflows and investment in developing countries

Capital Inflows , Liquidity and Bubbles Guillermo

Policymakers in Emerging Market economies (EMs) are facing a serious dilemma: while their economies are currently benefiting from a surge of capital inflows, they fear a replay of the 1990s and early 2000s when their economies underwent costly Sudden Stops (of capital inflows). A serious concern is that a capital‐inflow episode could give rise to "bubbles," i.e., an artificial or transitory inc...

Capital Inflows in a General Equilibrium Setting

Equilibrium Setting Carlos C. Bautista* A computable general equilibrium (CGE) model is constructed to examine the effects of capital inflows on the sectors of the Philippine economy. The CGE model has five production sectors, two households and two primary inputs. Under a flexible exchange rate regime, it is shown that capital inflows lead to an appreciation of the domestic currency. Nontradab...

What Lures Cross-Border Venture Capital Inflows?

The change in the business model of venture capitalists from investing locally towards investing across borders started to intensify in the late 1990s. According to a dataset of European and NorthAmerican countries, we find that countries with higher expected growth and higher lagged stock market returns receive larger net cross-border venture capital inflows. Thus, portfolio companies located ...