Financial and capital account liberalization in the Pacific Basin: Korea and Taiwan during the 1980's
AbstractThis paper presents an alternative method of testing for financial capital mobility in the absence of forward exchange markets. A model of domestic interest rate determination during liberalization is applied to Korean and Taiwanese data. A variety of diagnostic and recursive tests are used to isolate structural breaks in the data. It is shown that Korean interest rates behave as if determined domestically until late 1988, while Taiwanese rates exhibit this behavior until early 1989.
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Bibliographic InfoPaper provided by EconWPA in its series International Finance with number 9508005.
Date of creation: 28 Aug 1995
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Other versions of this item:
- Menzie Chinn & William Maloney, 1998. "Financial and Capital Account Liberalization in the Pacific Basin: Korea and Taiwan During the 1980's," International Economic Journal, Korean International Economic Association, vol. 12(1), pages 53-74.
- Menzie D. Chinn & William F. Maloney, 1996. "Financial and Capital Account Liberalization in the Pacific Basin: Korea and Taiwan during the 1980's," NBER Working Papers 5814, National Bureau of Economic Research, Inc.
- F3 - International Economics - - International Finance
- F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
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