The Impact of Capital Controls on Growth Convergence

摘要: Both cross-sectional regression and panel data methods of growth convergence estimation are used to determine the impact various forms capital controls on economic convergence. We suggest a method control for measurement error in regressions based quality estimates. The effect is found be strongly dependent specific type place, with restrictions current account payments having most detrimental growth. A key finding importance interaction effects between openness trade, initial income. income suggests that not only do impair growth, they also reduce rate conditional omission these interactions may explain failure earlier studies find