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The Impact of Financial Services Trade Liberalization on China

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  • Li-Gang Liu

Abstract

This paper shows that financial services trade liberalization in China has set impetus for accelerated domestic financial liberalization. Foreign banks, though still relatively small in size, have already exerted considerable influence on China's capital flows. Empirical findings from a gravity model analysis indicate that financial services trade liberalization under the WTO promotes bank loans to developing economies strongly though not evenly conditional on country characteristics.

Suggested Citation

  • Li-Gang Liu, 2005. "The Impact of Financial Services Trade Liberalization on China," Discussion papers 05024, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:05024
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    File URL: https://www.rieti.go.jp/jp/publications/dp/05e024.pdf
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    Cited by:

    1. Shivangi JAISWAL & Dr. N. KUBENDRAN, 2021. "Capital account liberalisation in India: Volatility of capital flows and selective policy issues," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania / Editura Economica, vol. 0(1(626), S), pages 201-218, Spring.
    2. Forssbaeck, Jens & Oxelheim, Lars, 2007. "The transition to market-based monetary policy: What can China learn from the European experience?," Journal of Asian Economics, Elsevier, vol. 18(2), pages 257-283, April.

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