The Chinn-Ito Index

– A de jure measure of financial openness –

Menzie Chinn

University of Wisconsin, Madison and NBER

Hiro Ito

Portland State University


Now Updated to 2008!




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).


Currently, the index is updated to 2008.


The dataset is available in the Excel or STATA format. The data file contains the Chinn and Ito index series for the time period of 1970-2007 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."


More information on how the index is constructed, the index's summary statistics, 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.


When you use the index, please acknowledge our JDE or JCPA paper (see below) as the data source. 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f own. All rights reserved.


If you still have questions after reading the Note, please contact Hiro Ito (


The trilemma indexes (Aizenman, Chinn, Ito, 2008) are available here.




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).


August 5, 2010