Capital Movements (capital + movement)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting80%
Distribution within Business, Economics, Finance and Accounting
General & Introductory Economics50%

Selected Abstracts

Economic Integration, International Capital Movements, and Labour Standards,

LABOUR, Issue 2 2005
Morten Skak
The paper develops a model where more integration initiates a movement towards the bottom of labour standards when increased integration enhances the flow of capital and so increases the marginal gain of a reduction in the strictness of standards. Moreover, a Pareto improving common international standard with higher strictness than in the Nash equilibrium can be negotiated among countries with the same preference for employed worker protection versus social efficiency. When preferences differ between countries, an agreed common or minimum strictness of labour standards will typically not be Pareto improving, but to the detriment of the country that gives less weight to the protection of employed workers. However, in this case there is also a Pareto improving solution, which raises the strictness of labour standards compared to the Nash equilibrium for both countries, but at the same time accepts different country standards reflecting their different preference. [source]

A Comparative Literature Survey of Islamic Finance and Banking

FINANCIAL MARKETS, INSTITUTIONS & INSTRUMENTS, Issue 4 2001
Tarek S. Zaher
There has been large-scale growth in Islamic finance and banking in Muslim countries and around the world during the last twenty years. This growth is influenced by factors including the introduction of broad macroeconomic and structural reforms in financial systems, the liberalization of capital movements, privatization, the global integration of financial markets, and the introduction of innovative and new Islamic products. Islamic finance is now reaching new levels of sophistication. However, a complete Islamic financial system with its identifiable instruments and markets is still very much at an early stage of evolution. Many problems and challenges relating to Islamic instruments, financial markets, and regulations must be addressed and resolved. In this paper, we provide a comprehensive comparative review of the literature on the Islamic financial system. Specifically, we discuss the basic features of the Islamic finance and banking. We also introduce Islamic financial instruments in order to compare them to existing Western financial instruments and discuss the legal problems that investors in these instruments may encounter. The paper also gives a preliminary empirical assessment of the performance of Islamic banking and finance, and highlights the regulations, challenges and problems in the Islamic banking market. [source]

Black and official exchange rate volatility and foreign exchange controls: evidence from Greece

INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS, Issue 1 2001
Angelos Kanas
F31; F32; C22; C52 Abstract This paper examines the issue of volatility and capital controls to the official and black market exchange rates of the Greek Drachma using the monthly exchange rate against the US dollar for the period 1975,1993. Specifically, we apply a GARCH(1,,1) model to study the behaviour of the official and black market drachma/dollar exhange rate. The main findings of the analysis are: (i) in contrast to the findings of previous studies using monthly rates, GARCH processes characterize the drachma/dollar exchange rate series in both markets; (ii) the relaxation of foreign exchange controls increased the volatility of the exchange rate in the official market as implied by theory; (iii) the persistence of volatility is reduced when account is taken of the liberalization process of capital movements; and (iv) The forecasts of volatility are improved when the GARCH forecasts are used against traditional measures. Copyright © 2001 John Wiley & Sons, Ltd. [source]

International Regimes, Domestic Veto-Players, and Capital Controls Policy Stability

INTERNATIONAL STUDIES QUARTERLY, Issue 1 2003
Scott L. Kastner
States' decisions about regulating international capital movements are shaped in part by institutions and partisanship at the domestic level, but the effects of domestic-level variables are themselves contingent on the constraints imposed by the international system. We amend the veto-players hypothesis to account for the effects of international regimes on the political influence of domestic players in state decision-making. The history of changes in international financial regulations over the past four decades provides an ideal case to study the interaction of international regimes and domestic decision-making systems. We create a data set of all capital controls policy changes that 19 OECD parliamentary democracies made during the years 1951,1998. Using these new data, we find that states with a higher number of veto-player parties in government enact fewer capital controls policy changes. Furthermore, ideologically right-of-center governments in these industrialized countries are more likely than others to enact capital controls liberalizations. We also find, however, that the independent effects of these domestic-level variables disappear after the mid-1980s, when the systemic constraints imposed on individual states increased substantially. [source]

Has International Trade in Saving Improved US Economic Welfare?

THE ECONOMIC RECORD, Issue 2009
ANTHONY J. MAKIN
Over the past decade international policy-makers have perceived the current account deficit of the world's largest foreign borrower economy, the United States, as a threat to global economic and financial stability. Yet, by bridging the US domestic saving-investment gap, capital inflow that matched the huge US current account deficit also enabled a faster rate of domestic capital accumulation than home saving alone would have permitted. Consistent with the theory of international capital movements, this study identifies and compares the respective contributions of domestic and foreign saving to US gross domestic product per worker over the two decades prior to the onset of the US banking crisis. By revealing that foreign borrowing contributed significantly to raising US output and hence living standards over this period, it adds a new dimension to the debate about global imbalances. [source]