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

Author

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  • Adler, Johan

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

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.

Suggested Citation

  • Adler, Johan, 2001. "From closed to open door policy: An empirical study of Chinas international capital mobility, 1958-98," Working Papers in Economics 64, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0064
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    File URL: http://hdl.handle.net/2077/2869
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    References listed on IDEAS

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    More about this item

    Keywords

    Capital mobility; China; Consumption smoothing; Current account;

    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

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