Capital Account Liberalization and Economic Performance

Abstract

This paper reviews and discusses issues involved in assessing the relationship between capital account liberalization and economic performance. First, it discusses the different measures of restrictions used in the literature. Second, it reviews the literature on the relationship between growth and capital account liberalization. Finally, it identifies and explains some of the differences in the results of the various studies and provides some support for a positive effect of capital account liberalization on growth, especially for developing countries.Capital account liberalization;Capital flows;Capital controls;capital account, capital accounts, capital account openness, capital mobility, stock market, capital account restrictions, capital movements, capital inflows, capital markets, international capital flows, open capital accounts, current account, capital account transactions, international capital, liberalization of capital, private capital flows, capital account restriction, closed capital accounts, open capital account, open capital markets, capital account liberalizations, capital control, equity prices, capital market, private capital, net capital flows, border capital flows, unregulated capital flows, net capital, openness to capital flows, balance of payments, balance of payments statistics