On IMF debt and capital control: evidence from Malaysia, Thailand, Indonesia, the Philippines and South Korea
Journal of Financial Regulation and Compliance
ISSN: 1358-1988
Article publication date: 31 July 2020
Issue publication date: 10 May 2021
Abstract
Purpose
This study aims to investigate the effects of capital control and external debts after the 1997 financial crisis.
Design/methodology/approach
Using system estimation approach, the authors estimate a panel data-based econometric model for data on Malaysia, Thailand, Indonesia, the Philippines and South Korea from 1990 to 2017.
Findings
The authors find that on average, the crisis-hit South East Asian economies choosing external debt perform better in achieving greater economic growth and rebound better compared to economies imposing capital control.
Originality/value
This study attempts to answer whether a crisis-hit country should impose capital control or opt for external debt to recuperate from the crisis.
Keywords
Citation
Mohamad, A., Sifat, I.M., Mohd Thas Thaker, H. and Noor, A.M. (2021), "On IMF debt and capital control: evidence from Malaysia, Thailand, Indonesia, the Philippines and South Korea", Journal of Financial Regulation and Compliance, Vol. 29 No. 2, pp. 143-162. https://doi.org/10.1108/JFRC-08-2019-0108
Publisher
:Emerald Publishing Limited
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