This paper explores current account dynamics in eight small economies of Asia to examine whether or not capital flows have been excessive in these countries. Standard assumptions of perfect capital mobility and small open economy are jointly instrumental in simplifying theoretical tractability...

Within the framework of a dynamic Computable General Equilibrium model this pa-per analyses the impact of trade restrictions on regional rates of return on capital, mar-ginal costs of abatement and optimal climate policy. It will be shown that regional dif-ferences both in marginal costs of...

The level of capital mobility prevailing within a group of core European Union (EU) countries is evaluated by means of cointegration-based tests of the covered interest parity (CIP). Unlike previous studies, this one concentrates on long maturities, investigating three to ten-year assets, and...

This paper examines the evidence on saving-investment correlations and the covered interest parity conditions to gauge the degree of capital mobility in eight East Asia emerging markets. It is found that Hong Kong and Singapore have fairly mobile capital markets while other countries exhibit...

This paper extends earlier work (Kenen, 1987a, 1987b) on the ranking of exchange rate regimes. Using a two-country portfolio-balance model, it asks how pegged and floating exchange rates affect each country's ability to achieve its domestic policy objectives independently, without having to...

This paper studies the welfare effects of international investment to evade domestic taxes on domestic investment income. Capital mobility for tax evasion eliminates distortions in the intertemporal allocation of consumption, but introduces distortions in domestic production. Conversely, a...

The purpose of this paper is twofold: it analyses how far the external opening-up process of the Spanish economy that started with its integration into the EEC in 1986 has led to a higher effective degree of capital mobility; and it examines what kind of capital flows, exchange-rate pressures...

This paper analyzes the effectiveness of enforcement in controlling illegal immigration in two scenarios, capital mobility and capital immobility in the host nation (for illegal immigrants). The source nation is assumed throughout to have immobility of capital. We show that the net enforcement...

Using a two-sector-two-country model with aggregate scale economies and unionisation, we show that optimal welfare state policy entails positive levels of unemployment benefits under free-trade and capital mobility. In this setting, economic integration does not reduce the revenue raising...

This article corroborate the evidence that the Feldstein-Horioka test do not reflect capital mobility in the real side of economics, but just the variability between external and domestic saving.