Asia is known as the region with the most vibrant economic progress. From 1980 through to the Asian crisis in 1997-98, the average growth rate of emerging and developing economies in Asia was around 7 per cent, much higher than other regions. From 2000 until 2016, the average growth rate returned to 7 per cent, including periods of double-digit growth such as 2006-7. With such dynamics, the region attracts various types of capital flows. Juthathip Jongwanich, one of Thailand's leading economic researchers, who specialises in the field of international economics, recently published a book that offers a comprehensive discussion on the determinants of capital mobility in Asia.The author's intention in writing this book is to augment the literature on capital mobility in Asia, especially in the post-crisis period after 1997-98. By analysing data from selected countries in the region, Jongwanich (2017) explores several topics related to capital flows: (1) identifying crucial factors affecting capital flows. (2) reviewing the impact of capital flows on the domestic economy, especially on the real exchange rate, and (3) evaluating the effectiveness of policies designed to manage capital flows that were implemented in several countries in Asia. This book has a lot to offer. The content is very relevant for academics, students, policy-makers, and government officials who are interested in the dynamics of capital flows in Asia, especially after the global financial crisis in 2008. In addition to using the latest data, the author also provides policy insights into using breakthrough approaches such as elaborating M&A data as well as setting up a capital policy index for Malaysia and Thailand. Another notable feature of the book is the separation of the analysis for inward and outward flows, which have different characteristics. Although the book already covers a significant amount of ground on this topic with novel approaches, it would be beneficial to include policy recommendations for particular countries, since the countries used in the regression analysis have different characteristics. In the methodological area, considering the variety of metrics used in the regression analysis, the standardized beta approach to sort out which variable has the larger role in determining the flow could be applied in order to set the policy priorities. Lastly, on the chapter discussing capital account policy, the author claims that Malaysia's policy in controlling outflows is considered as effective. However, quoting one of the propositions about capital flows policy from Reinhart (2003:233), 'Controls in one market may shift volatility to other markets', there is a possibility that outflows could still occur through imports, which were not evaluated in the VAR." — Wishnu Mahraddika, Asian Pacific Economic Literature, 2018.
