As part of the Brown Bag Lunch series, the International Economics Department at the Graduate Institute is pleased to invite you to a public talk given by Wenjie Li, PhD student in International Economics.

The Variation of CFMs index in Emerging Market Economies

Abstract: This paper builds a new database about capital flows management measures (CFMs) for 20 emerging countries from 1960 to 2018. The CFMs index shows that in the liberalization cycle of financial account since the 1980s, the FDI category was liberalized in a higher level than portfolio and debt categories. Besides, the control on residents’ flows was more tightening than nonresidents’ flows. Correlations between three subcategories also reveal that authorities generally choose to adjust gross outflows for three subcategories, both residents and nonresidents, at the same pace while the management for subcategories on nonresidents' gross inflows is more differential. Financial openness, interacted with push factors and pull factors, do appear to affect the behavior of capital flows but the instant effect of openness change on flows is still under doubt.