Capital Mobility in Asia: Causes and Consequences

Review

Paitoon Wiboonchutikula, The Singapore Economic Review, 2018.

"It has already been three decades since the emerging economies in Asia opened their capital account. The period is long enough to collect data for analyzing the behavior and the impact of capital flows in these economies. The author of this book provides this valuable service by carefully conducting empirical research on the subject and collating the findings in 8 chapters on the determinants, the impact, and the policy effects of capital flows. 

... the author carries out empirical research on the various aspects of capital flows in EAEs during 1990 to 2014 and reports the results in eight independent chapters. The first two chapters describe trends and patterns of capital flows in the Asian region. Chapters 3 to 5 are on the determinants of capital flows classified by type: FDI versus non-FDI (foreign portfolio investment and others) and capital inflows versus capital outflows. Chapter 6 studies the effects of capital flows on real exchange rates. Chapter 7 simulates the effects of capital control policies on the volume and composition of capital flows in selected Asian counties. The last chapter summarizes the results and uses them to suggest policies. The study on the determinants and the effects of capital flow relies on various forms of regression specification and technique. 

All of the above reviewed chapters are well-organized, well-written, and easy to read. Each can be a stand-alone article worthwhile for publication in leading academic journals. Overall, the book is strongly recommended for researchers, students, policy makers, and economic analysts who wish to understand and look for accessible tools for projecting the trends of capital inflows, capital outflows, real exchange rates, and capital account policy efficacy in developing countries."

About the Publication

"Asia has benefitted greatly from its integration into the world economy. But globalization has its challenges, including those that are the subject of this excellent new study: how to manage the interface with global capital markets, especially in the current, highly unusual monetary policy settings in the major economies. Dr Juthathip Jongwanich has been researching these issues for several years. In this volume she writes with great authority, providing a comprehensively, succinct and accessible examination of the many complex issues. A must-read volume for policymakers and academics alike." 
Hal Hill, H.W. Arndt Professor of Southeast Asian Economies, Australian National University

"A very timely and excellent book on capital volatility. Jongwanich provides a superb analysis on the impact of capital flows on home country, exchange rates and the capital account policies. A very important book, especially for academia and policymakers." 
Muhamad Chatib Basri, Former Finance Minister of Indonesia

"This timely book presents outstanding research on the determinants and effects of capital flows as well as the effectiveness of capital control policies in dealing with volatile capital flows in emerging Asian countries. It will be a useful and valuable reading for researchers and policymakers to understand the nature of cross-border capital movement and design the policies conducive to more stable and sustainable economic growth." 
Jong-Wha Lee, Professor of Economics and Director of Asiatic Research Institute, Korea University

"This is an important book. Ever since the East Asian financial crisis, it has been recognized that emerging market economies are vulnerable to both excessive inflows of capital and sudden outflows. But up until now there have been few detailed empirical studies of this issue. This book looks at the key factors determining capital mobility, considers the impact of capital flows, especially on real exchange rates, and examines the possibility of effective capital controls. Jongwanich draws two key conclusions: shifting the mix of inflows towards FDI is possible and desirable, and well-functioning domestic financial markets are essential if capital inflows are to be well used."
David Vines, Professor of Economics and Fellow of Balliol College, University of Oxford

Contents

PDF e-book files for this publication are available as detailed below.

Capital Mobility in Asia: Causes and Consequences [Whole Publication], by Juthathip Jongwanich, editor 20.00 USD
Preliminary pages Download
1. Introduction Download
2. Capital Mobility in Emerging Asian Countries 5.00 USD
3. Determinants of Inward Foreign Direct Investment in Emerging Asian Countries 5.00 USD
4. Determinants of Outward Foreign Direct Investment from Emerging Asia 5.00 USD
5. Determinants of Non-Foreign Direct Investment Capital Flows 5.00 USD
6. Capital Flows and Real Exchange Rates in Emerging Asian Countries 5.00 USD
7. Effectiveness of Capital Controls: Evidence from Malaysia and Thailand 5.00 USD
8. Conclusions and Policy Inferences 5.00 USD
Appendix 1: A Chronology of Capital Account Policy in Malaysia, 1992–2010 Download
Appendix 2: A Chronology of Capital Account Policy in Thailand, 1990–2010 Download
Bibliography Download
Index Download
About the Author Download

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