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

• Main Authors: Mohamad, A., Imitiaz, M. S., Mohd Thas Thaker, Hassanudin *, Anwar, M. N.
• Format: Article
• Published: Emerald 2020
• Subjects: HF Commerce
• Online Access: http://eprints.sunway.edu.my/1414/; http://doi.org/10.1108/JFRC-08-2019-0108
• Institution: Sunway University

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.