Microeconomic effects of capital controls: The chilean experience during the 1990s
Article first published online: 7 JUL 2003
Copyright © 2003 John Wiley & Sons, Ltd.
International Journal of Finance & Economics
Special Issue: Symposium on Capital Controls
Volume 8, Issue 3, pages 225–253, July 2003
How to Cite
Gallego, F. A. and Hernández, F. L. (2003), Microeconomic effects of capital controls: The chilean experience during the 1990s. Int. J. Fin. Econ., 8: 225–253. doi: 10.1002/ijfe.207
- Issue published online: 7 JUL 2003
- Article first published online: 7 JUL 2003
- Capital controls;
- financial structure
This paper provides empirical evidence on some of the microeconomic effects of the capital controls introduced in Chile during the 1990s, in particular, the unremunerated reserve requirement (URR). By looking at financial statements for a group of 73 Chilean firms during 1986–2001, the paper attempts to identify the effects of the URR on the firms' costs and ways of financing. Results show that the effects of the URR are firm specific; for instance, there are striking differences in the response to the URR among firms of different size and those with or without access to international capital markets. Copyright © 2003 John Wiley & Sons, Ltd.