OECD Code of Liberalisation of Capital Movements

This paper assembles a comprehensive sectoral capital flows dataset for 64 advanced and emerging economies from 2000-18, including direct, portfolio, and other investment to and from five sectors: namely, central banks (CB), general government (GG), banks (BKs), non-financial corporates (NFCs) and other financial corporates (OFCs). Using this data, the paper highlights the usefulness of a sectoral approach in assessing capital flow covariates, co-movements, and the effectiveness of capital controls. We show that 1) sectoral flows have varying sensitivities to measures of the global financial cycle and different cyclicality with respect to output growth; 2) co-movements in intra-sectoral resident and non-resident and co-movements with OFC sectoral flows explain a large part of the observed positive correlation between gross inflows and outflows; and, 3) sectorspecific tightening capital control measures appear effective in reducing the volume of flows to NFCs and OFCs.

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OECD Code of Liberalisation of Capital Movements

Cited by 3 publications

References 7 publications

Theorie und Politik: Protektion, Liberalisierung, Regionalismus und internationale Güter- und Faktorbewegungen

Theorie und Politik: Protektion, Liberalisierung, Regionalismus und internationale Güter- und Faktorbewegungen

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Sectoral Capital Flows: Covariates, Co-movements, and Controls

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