The Dismantling of Capital Controls after Bretton Woods and Latin American Productivity
AEA Papers and Proceedings
vol. 112,
May 2022
(pp. 252-56)
Abstract
The recent economic history of global integration has been characterized by a dismantling of capital controls and increased foreign direct investment (FDI). This paper explores the role of impediments to international capital mobility, foreign direct investment, and technology diffusion in shaping Latin American economic growth. First, the paper summarizes and quantifies the effects of the Bretton Woods international financial system in Latin America. Then, I study the consequences of capital controls—and their dismantling—on FDI and trade-induced technological advancements and their role in shaping local development, especially in the 1990s after the implementation of several trade liberalization policies.Citation
Van Patten, Diana. 2022. "The Dismantling of Capital Controls after Bretton Woods and Latin American Productivity." AEA Papers and Proceedings, 112: 252-56. DOI: 10.1257/pandp.20221049Additional Materials
JEL Classification
- F21 International Investment; Long-term Capital Movements
- F38 International Financial Policy: Financial Transactions Tax; Capital Controls
- O19 International Linkages to Development; Role of International Organizations
- O24 Development Planning and Policy: Trade Policy; Factor Movement; Foreign Exchange Policy
- O33 Technological Change: Choices and Consequences; Diffusion Processes
- O47 Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence