NBER WORKING PAPER SERIES WHY DO EMERGING MARKETS LIBERALIZE CAPITAL OUTFLOW CONTROLS? FISCAL VERSUS NET CAPITAL FLOW CONCERNS

for useful comments and suggestions. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada or the NBER. The views expressed herein are those of the authors and do not reflect the views of the Bank of Canada or the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications. © 2013 by Joshua Aizenman and Gurnain Kaur Pasricha. All rights reserved. Short sections of text, not to exceed two paragraphs, may be quoted without explicit permission provided that full credit, including © notice, is given to the source. Why do emerging markets liberalize capital outflow controls? Fiscal versus net capital flow concern