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

• Main Authors: Mohamad, Azhar, Sifat, Imtiaz Mohamad, Mohd Thas Thaker, Hassanudin, Muhammad Noor, Anwar
• Format: Article
• Language: English; English; English
• Published: Emerald Group Publishing Ltd. 2020
• Subjects: HG Finance; HG178 Liquidity
• Online Access: http://irep.iium.edu.my/84733/8/84733%20On%20IMF%20debt%20and%20capital%20control_%20SCOPUS%20in-press.pdf; http://irep.iium.edu.my/84733/19/84733_On%20IMF%20debt%20and%20capital%20control_fulltext.pdf; http://irep.iium.edu.my/84733/20/84733_On%20IMF%20debt%20and%20capital%20control_WOS.pdf; http://irep.iium.edu.my/84733/; https://www.scopus.com/inward/record.uri?eid=2-s2.0-85088804269&doi=10.1108%2fJFRC-08-2019-0108&partnerID=40&md5=080051fd2f5a6f25feed2e2ffcf41e31
• Institution: Universiti Islam Antarabangsa Malaysia

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. © 2020, Emerald Publishing Limited.