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Capital Flow Management Measures and Capital Flows: Evidence from India

Author

Listed:
  • Yang Zhou

    (Graduate School of Economics, Nagoya City University, JAPAN)

  • Shigeto Kitano

    (Research Institute for Economics and Business Administration, Kobe University, JAPAN)

Abstract

This study empirically examines the relationship between capital flow management measures (CFMs) and capital flows in India. Using the local projection method and monthly de jure data constructed by Binici et al. (2024), we find that changes in CFMs are associated with significant responses in capital flows across all examined asset categories, including portfolio, equity, debt, and FDI inflows, as well as portfolio and FDI outflows.

Suggested Citation

  • Yang Zhou & Shigeto Kitano, 2025. "Capital Flow Management Measures and Capital Flows: Evidence from India," Discussion Paper Series DP2025-35, Research Institute for Economics & Business Administration, Kobe University, revised Mar 2026.
    • Handle: RePEc:kob:dpaper:dp2025-35
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    File URL: https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2025-35.pdf
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    References listed on IDEAS

    as
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    JEL classification:

    • F38 - International Economics - - International Finance - - - International Financial Policy: Financial Transactions Tax; Capital Controls
    • F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets

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