Capital flows and domestic market integration in China
Abstract
This paper examines whether reforms have created a substantial commercial sector with market characteristics in China's financial system. Many studies conclude that the operation of China's capital markets lacks market features, resulting in fragmentation. Yet, this lack of integration coincides with rapid and continuous economic growth. We study the dynamic pattern of domestic capital mobility with a unique data set on provincial savings and investment, which allows us to examine components as well as aggregates. After stripping out foreign and officially influenced funds, we find that the behavior of capital flows in what we define as China's commercial sector looks increasingly like that of interstate flows in the US and other advanced nations. Tracking the direction and size of capital flows also highlights the different behavior of commercial and non-commercial funds transfers in China. This result undercuts the widespread view of China's economy as lacking domestic integration.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by Taylor and Francis Journals in its journal Journal of Chinese Economic and Business Studies.
Volume (Year): 8 (2010)
Issue (Month): 1 ()
Pages: 67-94
Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=109387
Order Information:
Web: http://www.tandf.co.uk/journals/subscription.asp
Related research
Keywords: China's economy; capital market; financial integration;References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:taf:jocebs:v:8:y:2010:i:1:p:67-94For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.