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Capital controls checkup: Cases, customs, consequences

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  • Goldbach, Stefan
  • Nitsch, Volker

Abstract

This paper examines the effect of administrative restrictions on cross-border capital transactions. Using highly disaggregated data from the German balance of payments statistics for the period from 1999 through 2017, we document several stylized facts about the effectiveness of such capital control policies introduced by other countries. Capital controls are associated with economically and statistically significant declines in capital flows; they affect bilateral financial relationships along both the extensive and the intensive margin. Capital controls have also been effective in reducing capital flows within the European Union.

Suggested Citation

  • Goldbach, Stefan & Nitsch, Volker, 2020. "Capital controls checkup: Cases, customs, consequences," Discussion Papers 47/2020, Deutsche Bundesbank.
    • Handle: RePEc:zbw:bubdps:472020
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    References listed on IDEAS

    as
    1. Bilge Erten & Anton Korinek & José Antonio Ocampo, 2021. "Capital Controls: Theory and Evidence," Journal of Economic Literature, American Economic Association, vol. 59(1), pages 45-89, March.
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    More about this item

    Keywords

    restriction; capital flow; transaction;
    All these keywords.

    JEL classification:

    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls

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