RIEB Discussion Paper Series No.2022-38

RIEB Discussion Paper Series No.2022-38


Effectiveness of Capital Controls: Gates versus Walls


This study analyzes the effectiveness of capital controls on international debt flows using data of 81 economies, including both advanced and emerging economies, over the period from 1995 to 2019. The analysis using the total sample shows that, although they are in the expected directions, the impulse responses of capital controls are statistically insignificant. Making various distinctions among samples (such as advanced and emerging economies and pre- and post-crisis periods), we still find that most results are statistically insignificant. However, the canonical distinction between the "gate" and "wall" economies indicates that the effectiveness of capital controls is relevant for the "wall" emerging economies.


Capital flows; Capital controls; Local projection

JEL Classification

E69, F32, F38, F41


Institute of Developing Economies, JETRO
Junior Research Fellow, RIEB, Kobe University

Shigeto KITANO
Research Institute for Economics and Business Administration
Kobe University
Rokkodai-cho, Nada-ku, Kobe
657-8501 Japan
Phone: +81-78-803-7036
FAX: +81-78-803-7059