From closed to open door policy: An empirical study of Chinas international capital mobility, 1958-98
AbstractThis paper employs the intertemporal consumption smoothing approach to the current account to measure the effective degree of Chinas international capital mobility during the period 1958-98. In contrast to all previous known country studies using this framework, the hypothesis that capital has been at least mobile enough to allow for full consumption smoothing behavior is rejected. Also, although there is clear evidence of a drastic increase in mobility following the introduction of the open door policy in the late 1970s, the result indicate that there remain effective barriers to Chinas international capital movements.
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Bibliographic InfoPaper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 64.
Length: 34 pages
Date of creation: 18 Oct 2001
Date of revision:
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Postal: Department of Economics, School of Business, Economics and Law, University of Gothenburg, Box 640, SE 405 30 GÖTEBORG, Sweden
Phone: 031-773 10 00
Web page: http://www.handels.gu.se/econ/
More information through EDIRC
Capital mobility; China; Consumption smoothing; Current account;
Find related papers by JEL classification:
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
- F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
- F47 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Forecasting and Simulation: Models and Applications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2002-01-22 (All new papers)
- NEP-IFN-2002-01-22 (International Finance)
- NEP-MAC-2002-01-05 (Macroeconomics)
- NEP-SEA-2002-01-22 (South East Asia)
- NEP-TRA-2002-01-22 (Transition Economics)
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