This article explores the feasibility of using a logit methodology for predicting the imposition of exchange controls. Fourteen variables reflecting the yearly changes in the economic conditions of a country and 17 variables representing the yearly occurrences of sociopolitical events are used as the explanatory variables. Eight exchange controls imposed by the governments of Argentina, Peru, and Turkey during 1974–1986 are empirically investigated. The results show that economic and sociopolitical variables may be used for predicting the imposition of exchange controls.
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