RIEB Discussion Paper Series No.2025-35

Title

The Effectiveness of Capital Flow Management Measures: Evidence from India

Abstract

This study empirically examines the effectiveness of capital flow management measures (CFMs) in India. Using the local projection method and monthly de jure data constructed by Binici et al. (2024), we find that CFMs are effective across all examined asset categories: portfolio, equity, debt, and FDI inflows, as well as portfolio and FDI outflows.

Keywords

Capital flow management measures (CFMs); Capital controls; India; Local projection

JEL Classification

F38, F32, G15

Inquiries

Yang ZHOU
Graduate School of Economics, Nagoya City University, JAPAN

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