Author
Listed:
- Kun Liu
- Lingchen Lu
- Jianwei Xu
- Baogui Xin
Abstract
In recent years, the rise of investment protectionism has led to the decline of investment openness all over the world. Based on the perspective of valuation effects which affects changes in national external wealth, we carry out empirical analysis and find that investment openness has inhibitory effect on national external wealth in the short term but promotes it in the lag period. Furthermore, we use the open economy macroeconomic theory (NOEM) to construct DSGE model and find that reducing the degree of investment openness will lead to the rise of domestic investment asset prices and produce positive valuation effects, which will lead to the short term increase of national external wealth. However, this effect has poor persistence. In the long run, the reduction of openness will hinder transnational investment, reduce the income of transnational investment, and eventually lead to the deterioration of national external wealth. The DSGE model we constructed can be applicable for solving some problems for open economic policy. From the conclusion we have acquired, it is indicated that nations who want to maintain the steady growth of the external wealth should continue to improve investment openness and international investment environment, alleviate investment information asymmetry, and avert increasing investment protectionism.
Suggested Citation
Kun Liu & Lingchen Lu & Jianwei Xu & Baogui Xin, 2022.
"Impact of Investment Openness on National External Wealth: Based on Valuation Effects Perspective,"
Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-17, January.
Handle:
RePEc:hin:jnddns:6861315
DOI: 10.1155/2022/6861315
Download full text from publisher
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:hin:jnddns:6861315. 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: Mohamed Abdelhakeem (email available below). General contact details of provider: https://www.hindawi.com .
Please note that corrections may take a couple of weeks to filter through
the various RePEc services.