IDEAS home Printed from https://ideas.repec.org/h/wsi/wschap/9789814338950_0005.html
   My bibliography  Save this book chapter

Assessing International Capital Mobility: Evidence from China

In: Studies In East Asian Economies Capital Flows, Exchange Rates and Monetary Policy

Author

Listed:
  • Jagdish Handa
  • Jie Lin
  • Helei Wang

Abstract

This chapter assesses China's international capital mobility during 1952'2005 and two sub-periods 1952–1978 and 1979–2005. The analysis uses two alternative approaches: the saving-investment correlation one and the intertemporal present value approach to the current account with consumption smoothing. Our econometric findings from the Johansen and Pesaran's (bounds testing) cointegration techniques for both approaches support each other. Our overall finding is that China had extremely limited capital mobility during the pre-reform period 1952–1978 and limited capital mobility during the post-reform period 1979–2005. Although its international capital mobility increased substantially after the start of economic liberalization in 1979, it remained less than that implied by the consumption-smoothing approach to the current account.

Suggested Citation

  • Jagdish Handa & Jie Lin & Helei Wang, 2011. "Assessing International Capital Mobility: Evidence from China," World Scientific Book Chapters, in: Studies In East Asian Economies Capital Flows, Exchange Rates and Monetary Policy, chapter 5, pages 183-216, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789814338950_0005
    as

    Download full text from publisher

    File URL: https://www.worldscientific.com/doi/pdf/10.1142/9789814338950_0005
    Download Restriction: Ebook Access is available upon purchase.
    File URL: https://www.worldscientific.com/doi/abs/10.1142/9789814338950_0005
    Download Restriction: Ebook Access is available upon purchase.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:wschap:9789814338950_0005. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscientific.com/page/worldscibooks .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.