On IMF debt and capital control: evidence from Malaysia, Thailand, Indonesia, the Philippines and South Korea

Purpose:This study aims to investigate the effects of capital control and external debts after the 1997 financial crisis. Design/methodology/approach: Using system estimation approach, the authors estimate a panel data-based econometric model for data on Malaysia, Thailand, Indonesia, the Philippin...

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Bibliographic Details
Main Authors: Mohamad, A., Imitiaz, M. S., Mohd Thas Thaker, Hassanudin *, Anwar, M. N.
Format: Article
Published: Emerald 2020
Subjects:
Online Access:http://eprints.sunway.edu.my/1414/
Description
Summary:Purpose:This study aims to investigate the effects of capital control and external debts after the 1997 financial crisis. Design/methodology/approach: Using system estimation approach, the authors estimate a panel data-based econometric model for data on Malaysia, Thailand, Indonesia, the Philippines and South Korea from 1990 to 2017. Findings: The authors find that on average, the crisis-hit South East Asian economies choosing external debt perform better in achieving greater economic growth and rebound better compared to economies imposing capital control. Originality/value: This study attempts to answer whether a crisis-hit country should impose capital control or opt for external debt to recuperate from the crisis.