CAPITAL FLOW MANAGEMENT MEASURES AND CAPITAL FLOWS: EVIDENCE FROM INDIA

This study empirically examines the relationship between capital flow management measures (CFMs) and capital flows in India. Using the local projection method and monthly de jure data constructed by Binici et al. [( 2024 ). The incidence of capital flow management measures: Observations from a new database. IMF Economic Review, 72(1), 441–486], we find that changes in CFMs are associated with significant responses in capital flows across all examined asset categories, including portfolio, equity, debt and FDI inflows, as well as portfolio and FDI outflows.