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From closed to open door policy: An empirical study of Chinas international capital mobility, 1958-98

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  • Adler, Johan

    (Department of Economics, School of Economics and Commercial Law, Göteborg University)

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    Abstract

    This 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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    File URL: http://hdl.handle.net/2077/2869
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    Bibliographic Info

    Paper provided by University of Gothenburg, Department of Economics in its series Working Papers in Economics with number 64.

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    Length: 34 pages
    Date of creation: 18 Oct 2001
    Date of revision:
    Handle: RePEc:hhs:gunwpe:0064

    Contact details of provider:
    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/
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    Keywords: Capital mobility; China; Consumption smoothing; Current account;

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