This study examined the impact of cash flow, capital account liberalization (CAL) on investment growth of firms from both the direct and indirect channels, using the disaggregated firm-level data of 44 tradable and 31 non-tradable firms for the period of 2006 to 2016. It employed the differenced...

The term "original sin" refers to countries that cannot take out foreign loans that are denominated in its own currency. This study investigates how capital account liberalization affects capital flow volatility in countries with and without original sin. Overall, we find that the level of...

Opening the capital account allows financially-constrained firms to raise capital from abroad. Since capital and skilled labor are relative complements, this increases the relative demand for skilled labor versus unskilled labor, leading to higher wage inequality. Using aggregate data and...

The literature on the theoretical and empirical aspects of the relationship between finance and economic growth is both substantial and extensive. The same cannot be said on the relationship between financial development and poverty reduction-an equally important aspect. In this study, we visit...

We present a model in which a government's current capital controls policy signals future policies. Controls on capital outflows evolve in response to news on technology, conditional on government attitudes towards taxation of capital. When there is uncertainty over government types, a policy of...

In shaping the evolution of the global financial system in the decade ahead, few events will likely be more significant than capital account liberalisation in China and the internationalisation of the renminbi. This paper provides a theory-based inquiry into the contours of China's international...

This paper is the first to provide firm-level evidence of the effect of capital account liberalization on firms' total factor productivity (TFP) growth. We find that a one standard deviation increase in capital account liberalization is significantly associated with 0.16 to 0.17 standard...