Respondent

Laba Iryna Zinonivna

Theme

Government regulation of international capital flows in small open economies

Defence Date

29.05.2019

Annotation

The thesis researches theoretical and methodological principles of government
policy of international capital flows management and carries out macroeconomic analysis
of the effectiveness of such policy in small open economies.
The essence of the concepts of international capital flows, international capital
movement, and international capital migration is defined. Main theoretical approaches
concerning the nature, factors, and consequences of international capital movements and
peculiarities of their government regulation are generalized. The controversial nature of
international capital flows in the context of strengthening globalization processes is
clarified. Classifications of international capital flows and their government regulation
measures are systematized and supplemented. The effect of the transmission mechanism of
capital inflow and outflow disturbances on the main indicators of macroeconomic
environment under different monetary regimes and exchange rates are studied out,
and the evolution of views of the main economic schools and directions of economic
science on international capital flows and the role of government in their regulation is
investigated.
An assessment of the government regulation rate of different types of capital
inflows and outflows in 81 small open economies is carried out on an annual basis for
1995–2015, by calculating aggregated and disaggregated international capital flows
regulation coefficients, thus, constructing cross-country dynamic panel data model.
Researched countries are also clustered according to the instruments and directions of
international capital flows regulations.
Particular attention is paid to the analysis of the causes, instruments,
institutional peculiarities and macroeconomic consequences of government regulation
of international capital flows during and after the global financial crisis of 2008–2009
in Brazil (capital inflow regulation), Iceland (capital outflow regulation). The
assessment of the international capital flow regulation rate is also carried out for the
Ukrainian economy and its ambiguous influence on macroeconomic environment is
found out.
The views of leading international financial institutions concerning financial
liberalization and government regulation of international capital flows are traced.
Particularly, IMF’s New institutional view» on the liberalization and management of
capital flows is closely analyzed. The directions of increasing the efficiency of
international capital flows government regulation in small open economies with
underdeveloped institutional environment are also defined.
Key words: international capital movement, international capital flows,
government regulation of international capital flows, administrative regulation
measures, market-friendly regulation measures, rate of regulation, monetary policy,
transmission mechanism, interest rate, effectiveness.

Dissertation File

Autosummary File