Trends and determinants of raising ECBs in Indian Context

This study examines the effect of capital control measures initiated during the last two decades in terms of all-in-cost ceilings and enhanced limits on ECB in India over the sample period 2004Q1 to 2020Q2. Using global liquidity, the exchange rate between INR/USD, imports and interest rate differentials as control variables and changes in capital control measures from 2008 to 2011 in the all-in-cost ceiling, and changes in the enhanced limits on ECBs from USD 500 million to USD 750 million under the automatic route in 2012, regression analysis of three ECB series show interesting results. Using Robust Least Squares method, we document that (1) the successive increment in all-in-cost ceilings on ECB from 2008 to 2011 is inducing ECBs to flow, indicating that Indian firms benefit more than they pay due to increase the cost for ECBs having maturities 3<5 years. However, such capital control measures are not effective on ECBs having maturities >5 years. (2) The effect of the enhanced limits on ECBs from USD 500 million to USD 750 million under the automatic route in 2012 has a pronounced impact on ECB, averaging 1602.1 USD million per quarter. We observed that CCAs in India are initiated in response to the volatility of the exchange rate and global liquidity, imports, and interest rate differentials are significant variables in India's required capital control actions.

Capital Flow, Capital Control, and Economic Growth: Evidence from Developed & Developing Economies

Purpose: The current paper analyzes the effects of capital flow and capital control on economic growth in developed and developing countries. We used four main components of capital flow such as, FDI, exports, remittances and external debt Design/Methodology/Approach: The econometric models are tested by using the annual data of 1995-2017 from 54 countries, classified as developed (high-income) and developing (middle-income) economies. Findings: Empirical estimation of PMG revealed that all four components of capital flow augment the economic growth in both developed and developing countries. However, restrictions on these flows reduces the impact of FDI, external debt and exports but raises the influence of remittances on the economic growth. Implications/Originality/Value: The findings of this paper also provides some useful insights for policymakers to use capital control as a tool for economic progress.

Investigating Consumer Finance in Lebanon

The chapter aims to determine three research objectives: (1) ATM service quality in Lebanon measurement based on five dimensions, using the SERVQUAL model; (2) analyze and investigate customer satisfaction and loyalty of the ATM usage, during two different periods, before and after the following situations that Lebanon encountered: foreign currency shortage, commercial banks' informal capital control, and bankruptcy; and 3) assess the intention of the Lebanese to adopt Libra virtual currency. To achieve the objectives of the study, a questionnaire was distributed among bank clients in Lebanese. The results and analysis of the study have been done by comparing the means of SERVQUAL dimensions. The findings indicate that the Lebanese perspective of the banking system changed during the two different periods; however, their intention level to adopt a virtual currency is low.