This paper examines the financial impact of a transfer of legal sovereignty covering the rights to collateral to an international regime in the case of the Cape Town Convention and Protocol covering international mobile assets, specifically commercial aircraft and related equipment, which came into force in 2004. We estimate the impact on financing costs facing airlines based in signatory count...

Lack of coordination for prudential regulation hurts developing economies but benefits advanced economies. We consider a two-country macro model in which countries have limited ability to issue state-contingent contracts international markets, and equilibrium is constrained inefficient. Both incentives stabilize their economy by using limits, the emerging depends on bear global risk. Intermedia...

Any discussion of whether the global financial system has served the world well requires us to think about what it is that capital flows could achieve in the best of circumstances. The basic neoclassical model suggests that, with rising financial globalization, capital should flow from rich to poor countries, making people in both sets of countries better off by enabling a more efficient intern...

The health sector often appears prominent in surveys of perceived corruption, because citizens experience the symptoms of systemic corruption most distressingly during their interaction with frontline health workers. However, the underlying drivers of systemic corruption in society may be located in other social systems with the health system demonstrating the symptoms ...

Economic theory posits that capital should, on net, flow from richer to poorer countries. Specifically, in the benchmark neoclassical model, capital should flow from countries that have relatively high capital-to-labor ratios to countries that have relatively low ratios. In an influential paper, Lucas (1990) notes that flows of capital from the north to the south are nowhere near the levels pre...

Reductions in barriers to global trade have not been accompanied by a widespread loosening of restrictions on international flows of capital, especially in China. This study shows that China has some of the most restrictive controls and uses them effectively to bias flows of cross border capital heavily in favor of foreign direct investment and limit flows of portfolio and bank assets and liabi...

In the course of transition, the former centrally planned economies of central Europe have attracted increasing shares of the international capital flows to emerging market economies. Moreover, compared to other world regions, a relatively large share of these flows has been constituted of foreign direct investment. An exploration of the determinants of these capital flows, using a neo-classica...

serving as a starting point, a panel of IMF staff and distinguished outside researchers on May 27 debated financial globalization’s benefits and risks. Panelists were Eswar Prasad (IMF Asia and Pacific Department), Shang-Jin Wei (IMF Research Department)—two of the study’s authors—and C. Fred Bergsten (Director, Institute for International Economics (IIE)), Jeffrey Frankel (Professor, Kennedy S...

This paper revisits the Lucas paradox by quantifying empirically the relevance of a specific set of policies — restrictions on international capital flows — in shaping the patterns of capital movements at various stages of economic development. The determinants of the direction of capital flows, and their relation to economic development, constitute an important topic in open economy macroecono...