The
Chinn-Ito Index –
A de jure measure of financial openness – University of Wisconsin, Madison and NBER Portland State University Now Updated to 2021! (11/14/2023) |
The
Chinn-Ito index (KAOPEN) is an index measuring a country's degree of
capital account openness. The index was initially
introduced in Chinn and Ito (Journal of Development Economics, 2006). KAOPEN
is based on the binary dummy variables that codify the tabulation of
restrictions on cross-border financial transactions reported in the IMF's Annual
Report on Exchange Arrangements and Exchange Restrictions (AREAER).
Now, the index
is updated to 2021.
The dataset is available
in the Excel or STATA
format (STATA 15 dataset format). The data file contains the Chinn and Ito index series for the time period of 1970-2021 for 182 countries. A complete list of the
countries and their data availability and summary statistics are presented in
the "Note
on the Chinn-Ito Financial Openness Index."
When you use the index, please acknowledge
the following paper as the data source:
Chinn, Menzie D. and
Hiro Ito (2006). "What Matters for Financial Development?
Capital Controls, Institutions, and Interactions," Journal of Development Economics, Volume
81, Issue 1, Pages 163-192 (October).
|
More information on
how the index is constructed and how it compares with other measures of
cross-border financial flows can be found in:
"A New
Measure of Financial Openness", Journal of Comparative Policy Analysis, Volume
10, Issue 3 September 2008, p. 309 - 322. Note that this paper uses the 2007
version of the dataset (containing data up to only 2005), which will differ
from the current version of the dataset.
Disclaimer: We are not responsible for the results
of the estimations that use the index. Although the index is based on the
information released by the International Monetary Fund, the index is not
associated with the Fund. All the errors of the index are the authors' own. All
rights reserved.
If you still have
questions after reading the Note, please
contact Hiro Ito (ito@pdx.edu).
The trilemma indexes (Aizenman, Chinn, Ito, 2008) are also
available here.
Please note that the KAOPEN index for the trilemma index dataset
is normalized to range b/w zero and one.
Related Literature
Chinn, Menzie
D. and Hiro Ito (2008). "A New
Measure of Financial Openness". Journal
of Comparative Policy Analysis, Volume 10,
Issue 3, p. 309 – 322 (September).
Ito, Hiro
(2006). "Financial Development in Asia:
Thresholds, Institutions, and the Sequence of Liberalization". North American Journal of Economics and
Finance, issue
17(3) (December).
Chinn, Menzie
D. and Hiro Ito (2006)."What Matters for Financial
Development? Capital Controls, Institutions, and Interactions," Journal of Development Economics, Volume
81, Issue 1, Pages 163-192 (October). The longer version is available as
NBER Working Paper No. 11370 (May 2005). The previous version is "Capital Account Liberalization, Institutions and
Financial Development: Cross Country Evidence," (with Menzie Chinn)
NBER Working Paper Series, #8967 (June 2002).
International Monetary Fund (2010,
various years). Annual Report on Exchange
Arrangements and Exchange Restrictions (AREAER), Washington, D.C.:
International Monetary Fund.
Updated on November 14, 2023