NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Did the Malaysian Capital Controls Work?

Ethan Kaplan, Dani Rodrik

NBER Working Paper No. 8142
Issued in February 2001
NBER Program(s):   IFM

Malaysia recovered from the Asian financial crisis swiftly after the imposition of capital controls in September 1998. The fact that Korea and Thailand recovered in parallel has been interpreted as suggesting that capital controls did not play a significant role in facilitating Malaysia's rebound. However, the financial crisis was deepening in Malaysia in the summer of 1998, while it had significantly eased up in Korea and Thailand. We employ a time-shifted differences-in- differences technique to exploit the differences in the timing of the crises. Compared to IMF programs, we find that the Malaysian policies produced faster economic recovery, smaller declines in employment and real wages, and more rapid turnaround in the stock market.

download in pdf format
   (184 K)

email paper

This paper is available as PDF (184 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w8142

Published: Did the Malaysian Capital Controls Work?, Ethan Kaplan, Dani Rodrik. in Preventing Currency Crises in Emerging Markets, Edwards and Frankel. 2002

Users who downloaded this paper also downloaded these:
Johnson, Kochhar, Mitton, and Tamirisa Malaysian Capital Controls: Macroeconomics and Institutions
Radelet and Sachs The Onset of the East Asian Financial Crisis
Edwards w7413 How Effective are Capital Controls?
Magud and Reinhart Capital Controls: An Evaluation
Magud and Reinhart w11973 Capital Controls: An Evaluation
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us