04675oam 22010334 450 991078841460332120230721050918.01-4623-6088-21-4527-5113-71-283-51148-71-4519-1025-89786613823939(CKB)3360000000443387(EBL)1608457(OCoLC)568151181(MiAaPQ)EBC1608457(IMF)WPIEE2007008(EXLCZ)99336000000044338720020129d2007 uf 0engurcn|||||||||txtrdacontentcrdamediacrrdacarrierCollateral Damage : Exchange Controls and International Trade /Zhiwei Zhang, Shang-Jin WeiWashington, D.C. :International Monetary Fund,2007.1 online resource (41 p.)IMF Working Papers"January 2007."1-4518-6572-4 Includes bibliographical references (p. 14-15).Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Exchange Controls: Some Basic Patterns; 1. Evolutions of Restriction Indices; 1a. Summary Statistics for Restriction Indices; 1b. Correlations of the Control Indices, Tariff, and NTB Index; 2. Control Indices in Selected Countries; III. Statistical Analysis; 2. Benchmark Regressions; 3. Adding Time-varying Price Indices; 4. Developing Countries; 5. Additional Controls: Corruption and Trade Openness; 6. Finer Classification of Exchange Controls; 7. Emerging Market Economies during 1996-99; IV. Concluding Remarks1. Exchange Controls: Source, Measurement, and Indices 2. List of Countries in the Sample; References; FootnotesWhile new conventional wisdom warns that developing countries should be aware of the risks of premature capital account liberalization, the costs of not removing exchange controls have received much less attention. This paper investigates the negative effects of exchange controls on trade. To minimize evasion of controls, countries often intensify inspections at the border and increase documentation requirements. Thus, the cost of conducting trade rises. The paper finds that a one standard-deviation increase in the controls on trade payment has the same negative effect on trade as an increase in tariff by about 14 percentage points. A one standard-deviation increase in the controls on FX transactions reduces trade by the same amount as a rise in tariff by 11 percentage points. Therefore, the collateral damage in terms of foregone trade is sizable.IMF Working Papers; Working Paper ;No. 2007/008Foreign exchangeLaw and legislationInternational tradeBalance of paymentsNon-tariff trade barriersExports and ImportsimfForeign ExchangeimfTaxationimfInternational InvestmentimfLong-term Capital MovementsimfTrade PolicyimfInternational Trade OrganizationsimfTrade: GeneralimfCurrencyimfForeign exchangeimfInternational economicsimfPublic finance & taxationimfExchange restrictionsimfCapital controlsimfTariffsimfImportsimfCapital movementsimfTariffimfChileimfForeign exchangeLaw and legislation.International trade.Balance of payments.Non-tariff trade barriers.Exports and ImportsForeign ExchangeTaxationInternational InvestmentLong-term Capital MovementsTrade PolicyInternational Trade OrganizationsTrade: GeneralCurrencyForeign exchangeInternational economicsPublic finance & taxationExchange restrictionsCapital controlsTariffsImportsCapital movementsTariff343.032Zhang Zhiwei1400451Wei Shang-Jin118987International Monetary Fund.Research Dept.DcWaIMFBOOK9910788414603321Collateral Damage3802282UNINA