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      Financialisation and Economic Policy: The Issue of Capital Control in the Developing Countries

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            Abstract

            In analysing the availability and performance of the foreign capital in developing countries, too much attention has been given to the availability of capital and current account while far too little has been given to long-term investment, job creation and economic sovereignty. The current study centres on a critical review of available literature and a contribution to the substantive topics indicated in the title. The objective is to examine relevant empirical and theoretical studies. The study argues that following the adoption of capital liberalisation and neoliberalism, the economies of most developing countries have become more vulnerable. If China is excluded, we find that most developing economies have been unable to expand employment opportunities or reduce levels of poverty due to fear of capital flight. In recent years, capital liberalisation policy has encouraged capital flight from their economies. After 2008, the International Monetary Fund (IMF) publicly express support for capital controls as a result of the global financial crisis and as the vulnerabilities associated with capital flows.

            Content

            Author and article information

            Journal
            10.13169
            worlrevipoliecon
            World Review of Political Economy
            Pluto Journals
            2042891X
            20428928
            Winter 2017
            : 8
            : 4
            : 564-589
            Article
            worlrevipoliecon.8.4.0564
            10.13169/worlrevipoliecon.8.4.0564
            94d66591-a7c5-47c0-8541-90a8fa684d5b
            © 2017 World Association for Political Economy

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Categories
            Articles

            Political economics
            capital control,financialisation and instability,developing countries

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