Capital account liberalization is generally beneficial to developing and emerging countries. However, if there is a downside risk in one country, capital control policy can prevent it from exposing to carry trade flows and capital flight, and protect it from external financial volatility. In...

This study analyzes the effectiveness of capital controls on international debt flows using data of 81 economies, including both advanced and emerging economies, over the period from 1995 to 2019. The analysis using the total sample shows that, although they are in the expected directions, the...