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This book examines the effect of capital controls on financial stability and economic growth in Emerging Market Economies from a medium-term perspective. It analyzes the determinants of capital controls theoretically and their economic effects both theoretically and empirically. The theoretical part of the paper presents several arguments and introduces variables that are then tested in the empirical section. These include capital market openness (which is the primary variable in the Empirical section), GDP growth, inflation, FDI and Portfolio Investment and Stock Market Price and return…mehr

Produktbeschreibung
This book examines the effect of capital controls on financial stability and economic growth in Emerging Market Economies from a medium-term perspective. It analyzes the determinants of capital controls theoretically and their economic effects both theoretically and empirically. The theoretical part of the paper presents several arguments and introduces variables that are then tested in the empirical section. These include capital market openness (which is the primary variable in the Empirical section), GDP growth, inflation, FDI and Portfolio Investment and Stock Market Price and return growth and volatility (which are the secondary variables in the Empirical section). The data was obtained from the S&P's Broad Market Index, Chinn-Ito Index and the IMF's World Economic Outlook Database. The results of the tests show that net FDI flows are positively correlated with capital market openness, as is GDP growth. The association is positive and even stronger with Portfolio Investment and stock market volatility, while Inflation and stock market growth have correlate negatively with capital market openness.
Autorenporträt
Michael Muyambo, MA was born and raised in Mutare, Zimbabwe. He has a Master's degree in International Banking and Finance and a Bachelor's degree in Intercultural Business Administration. He currently works as an Accountant in Vienna, Austria.