... seminal paper by Frenkel and Levich (19 77), followed by many others including Dooley and Isard (19 80), Otani and Tiwari (19 81) , and Frankel (19 84 and 19 91) among others, is one of the most useful ... countries removed capital controls in the 19 80s. Frankel (19 92) reviewed literature on the analysis of international capital mobility in the 19 70s and 19 80s, and concluded that interest rate parity ... including political risks, exchange rate risk (market pressure), and transaction costs which Frankel (19 91) called “the country premium” that inhibit free mobility of cross-border capital flows. He...