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The
Chinn-Ito Index –
A de jure measure of financial openness – University
of Wisconsin, Madison and NBER Portland
State University Now Updated to 2019! (8/26/2021) |
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 2019.
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 1970-2019 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).
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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 August 26, 2021