RIEB Discussion Paper Series No.2024-30

Title

Effects of Capital Flow Management Measures on Wealth Inequality: New Evidence from Counterfactual Estimators

Abstract

We provide cross-country evidence that variations in capital flow management measures (CFMs) result in differences in wealth inequality and distribution by using counterfactual estimators for causal inference. Diverging from previous studies, we analyze the effects of ten distinct asset-specific CFMs on wealth inequality and distribution. While we obtain consistent results of aggregate CFMs with previous studies, our results of asset-specific CFMs are quite heterogeneous. Our result implies that the effects of CFMs on wealth inequality and distribution significantly depend on asset categories as well as income levels and capital flow directions.

Keywords

Capital flow management measures (CFMs); Wealth inequality; Gini coefficient; Wealth distribution; Counterfactual estimator

JEL Classification

D63, E21, F38, G15, G28, O16

Inquiries

Yang ZHOU
Institute of Developing Economies, JETRO
and
Research Institute for Economics and Business Administration, 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