April 25, 2013
Measuring Financial Openness
Chinn-Ito Index Updated to 2011
Our de jure index, based upon the IMF’s tabulation of external account restrictions, has been updated to 2011. We find (1) retrenchment in emerging markets, (2) and regionally, little change on average in East Asia/Pacific and South Asia/Middle East and Africa.
Figure 1: Mean KAOPEN by group. Source: Chinn and Ito
Figure 2: Mean KAOPEN by region. Source: Chinn and Ito
A comparison of the Chinn-Ito index against other measures of financial openness is here.
It’s interesting to consider how capital controls have evolved in the BRICs – Brazil, Russia, India and China.
Figure 3: KAOPEN series for US, UK (blue, chartreuse), China, India (red, orange), Brazil (green), and Russia (purple).
As I noted in this study, if these countries hope to have their currencies achieve status of an international currency, there is a long ways to go if currency convertibility is a prerequisite.
Posted by Menzie Chinn at April 25, 2013 09:00 PMdigg this | reddit