G20 › Topics › Financing-for-investment › Capital flows and the OECD Code of Liberalisation of Capital Movements
Promoting orderly capital flowsCapital flows are an integral component of international finance. They allow for savings to be channelled from surplus countries to deficit countries, where returns to investment are typically higher. However, these flows can also pose important challenges to open economies. Excessive inflows can lead the economy to overheat and fuel credit and asset price bubbles. Sharp reversals in capital inflows are disruptive. This has triggered renewed interest in the use of capital controls.
The G20 is discussing ways to help countries make the most of capital flows. The OECD’s Code of Liberalisation of Capital Movements is an important contribution to this debate.
The Code of Liberalisation of Capital Movements was born with the OECD in 1961 at a time when many OECD countries were in the process of economic recovery and development and when the international movement of capital faced many barriers.
For 50 years, the Code has provided a balanced framework for countries progressively to remove barriers to the movement of capital, while providing flexibility to cope with situations of economic and financial instability.
Revised governance arrangements announced in July 2012 mean the Code is now open to adherence by all interested countries. |
DOCUMENTS AND LINKS Freedom of investment roundtable FDI statistics for OECD and G20 countries FDI regulatory restrictiveness index OECD Code of Liberalisation of Capital Movements, 2018 (pdf) en Français (pdf) OECD Code of Liberalisation of Current Invisible Operations (pdf) en Français (pdf) International capital flows: Structural reforms and experience with the OECD Code of Liberalisation of Capital Movements, OECD report to the G20 Sub-Group on Capital Flow Management, June 2011 Getting the most out of international capital flows, OECD Economic Outlook, May 2011 OECD Codes of Liberalisation of Capital Movements and Current Invisible Operations: Users' Guide (pdf) en Français (pdf) Capital controls and the OECD Codes of Liberalisation, 2010 OECD countries improve their investment commitments under the Codes of Liberalisation, 2009 OECD Guidelines for recipient country investment policies relating to national security, 2009 Forty Years' Experience with the OECD Code of Liberalisation of Capital Movements, 2002 Foreign Direct Investment for Development – Maximising benefits – Minimising costs, 2002 Liberalising Capital Flows: Lessons from Asia, 1998 The Experience of the OECD with the Code of Liberalisation of Capital Movements, 1998 |
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