Collateral Damage : Exchange Controls and International Trade / Zhiwei Zhang, Shang-Jin Wei.

Format:

Book

Government document

Author/Creator:

Zhang, Zhiwei.

Contributor:

Wei, Shang-Jin.

International Monetary Fund. Research Department.

Series:

IMF Working Papers; Working Paper ; No. 2007/008

IMF Working Papers

Language:

English

Subjects (All):

Foreign exchange--Law and legislation.

Foreign exchange.

International trade.

Balance of payments.

Non-tariff trade barriers.

Physical Description:

1 online resource (41 p.)

Edition:

1st ed.

Other Title:

Exchange controls and international trade

Place of Publication:

Washington, D.C. : International Monetary Fund, 2007.

Summary:

While new conventional wisdom warns that developing countries should be aware of the risks of premature capital account liberalization, the costs of not removing exchange controls have received much less attention. This paper investigates the negative effects of exchange controls on trade. To minimize evasion of controls, countries often intensify inspections at the border and increase documentation requirements. Thus, the cost of conducting trade rises. The paper finds that a one standard-deviation increase in the controls on trade payment has the same negative effect on trade as an increase in tariff by about 14 percentage points. A one standard-deviation increase in the controls on FX transactions reduces trade by the same amount as a rise in tariff by 11 percentage points. Therefore, the collateral damage in terms of foregone trade is sizable.

Contents:

Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Exchange Controls: Some Basic Patterns; 1. Evolutions of Restriction Indices; 1a. Summary Statistics for Restriction Indices; 1b. Correlations of the Control Indices, Tariff, and NTB Index; 2. Control Indices in Selected Countries; III. Statistical Analysis; 2. Benchmark Regressions; 3. Adding Time-varying Price Indices; 4. Developing Countries; 5. Additional Controls: Corruption and Trade Openness; 6. Finer Classification of Exchange Controls; 7. Emerging Market Economies during 1996-99; IV. Concluding Remarks

1. Exchange Controls: Source, Measurement, and Indices 2. List of Countries in the Sample; References; Footnotes

Notes:

"January 2007."

Includes bibliographical references (p. 14-15).

Description based on print version record.

ISBN:

9786613823939

9781462360888

1462360882

9781452751139

1452751137

9781283511483

1283511487

9781451910254

1451910258

OCLC:

568151181