The Chinn-Ito de jure capital account index (previously discussed here and here) is now available, up to 2008. The data and accompanying documentation is all available here.
Some interesting aspects of the indices’ evolution are illustrated by the following two graphs.
Figure 1: Average Chinn-Ito index for industrial countries, emerging market countries, and LDCs (IMF classification for income groups).
Figure 2: Average Chinn-Ito index over time periods, for regional groupings, rescaled 0-1 (IMF classification for regions).
Capital account openness has continued to rise over time, although with some retrenchment in the industrial countries in the past couple years.
It’s important to recall that this index is a de jure, not de facto measure. Furthermore, it does not distinguish between inward and outward capital account restrictions. On the other hand, the index is useful because it covers the period 1970-2008, for 182 countries, and is updated over time.
This is great news! Thanks for your hard work!
A work of Carthusian (Carthusians is Stat crux dum volvitur orbis, Latin for “The Cross is steady while the world is turning.”)
Whilst not the core subject of the study few components of capital mobility are yet to be read and analyzed:
Case of a country using excessive money supply (in relation to its domestic GDP growth,Marshallian K) Pr HIro Ito monetary index does not include the case of
“hyper “money supply in one country versus others but linked monetary policies.The foreign exchange component can be neutralized through derivatives.
No mentioned is made of the disturbing negative factors of hot capital mobility (the swaps lines were catering for hot money and marginally for real capital formation)
No distinction is made through capital circulation (hot money) and real investments contributing to gross capital formation.
A pragmatic index of the real capital mobility, has yet to be designed,it would include and not only:
Time and paper works to obtain working,business visa,time of waiting at the immigration,time and process to clear goods and capital goods….
Good stuff, Menzie.
Expect that worrying decline to accelerate as the Obama regime responds to the crisis with more authoritarian measures a la Nixon.
This is a good companion index to the Index of Economic Freedom, which also shows the United States in decline.