Regional Capital Mobility in China: 1978-2006
We examine cross-region capital mobility in China and track how the degree of mobility has changed over time. The effects of fiscal and redistributive activities of different levels of government in China on private capital mobility are taken into account. Our results indicate that there was a significant improvement in capital mobility over time in China, particularly for private capital in the more developed regions. The central and provincial governments, via their taxation, spending, and transfers, loosen the relationship between private saving and investment and appear to promote capital mobility, particularly for less developed regions. There are considerable differences between more and less developed regions in terms of the degree of capital market integration and the improvement in capital mobility over time. The results have important policy implications on global re-balancing as well as regional development gap and risk-sharing within China.
|Date of creation:||Aug 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Wu, Jyh-Lin & Wu, Shaowen, 2001. "Is Purchasing Power Parity Overvalued?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 33(3), pages 804-12, August.
- Masao Ogaki & Nelson Mark & Donggyu Sul, 2004.
"Dynamic Seemingly Unrelated Cointegrating Regression,"
04-02, Ohio State University, Department of Economics.
- Nelson C. Mark & Masao Ogaki & Donggyu Sul, 2005. "Dynamic Seemingly Unrelated Cointegrating Regressions," Review of Economic Studies, Oxford University Press, vol. 72(3), pages 797-820.
- Nelson C. Mark & Masao Ogaki & Donggyu Sul, 2003. "Dynamic Seemingly Unrelated Cointegrating Regression," NBER Technical Working Papers 0292, National Bureau of Economic Research, Inc.
- Mark, Nelson & Ogaki, Masao & Sul, Donggyu, 2003. "Dynamic Seemingly Unrelated Cointegrating Regression," Working Papers 144, Department of Economics, The University of Auckland.
- Dekle, Robert, 1996.
"Saving-investment associations and capital mobility On the evidence from Japanese regional data,"
Journal of International Economics,
Elsevier, vol. 41(1-2), pages 53-72, August.
- Robert Dekle, 1995. "Saving-investment associations and capital mobility on the evidence from Japanese regional data," International Finance Discussion Papers 496, Board of Governors of the Federal Reserve System (U.S.).
- Pasaran, M.H. & Im, K.S. & Shin, Y., 1995.
"Testing for Unit Roots in Heterogeneous Panels,"
Cambridge Working Papers in Economics
9526, Faculty of Economics, University of Cambridge.
- Tamim Bayoumi, 1990. "Saving-Investment Correlations: Immobile Capital, Government Policy, or Endogenous Behavior?," IMF Staff Papers, Palgrave Macmillan, vol. 37(2), pages 360-387, June.
- Yamori, Nobuyoshi, 1995. "The relationship between domestic savings and investment: The Feldstein-Horioka test using Japanese regional data," Economics Letters, Elsevier, vol. 48(3-4), pages 361-366, June.
- Maddala, G S & Wu, Shaowen, 1999. " A Comparative Study of Unit Root Tests with Panel Data and a New Simple Test," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(0), pages 631-52, Special I.
- Nelson C. Mark & Donggyu Sul, 2002.
"Cointegration Vector Estimation by Panel DOLS and Long-Run Money Demand,"
NBER Technical Working Papers
0287, National Bureau of Economic Research, Inc.
- Nelson C. Mark & Donggyu Sul, 2003. "Cointegration Vector Estimation by Panel DOLS and Long-run Money Demand," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 65(5), pages 655-680, December.
- Yoosoon Chang, 2000.
"Bootstrap Unit Root Tests in Panels with Cross-Sectional Dependency,"
Cowles Foundation Discussion Papers
1251, Cowles Foundation for Research in Economics, Yale University.
- Chang, Yoosoon, 2004. "Bootstrap unit root tests in panels with cross-sectional dependency," Journal of Econometrics, Elsevier, vol. 120(2), pages 263-293, June.
- Yoosoon Chang, 2000. "Bootstrap Unit Root Tests in Panels with Cross-Sectional Dependency," Econometric Society World Congress 2000 Contributed Papers 1585, Econometric Society.
- Chang, Yoosoon, 2002. "Bootstrap Unit Root Tests in Panels with Cross-Sectional Dependency," Working Papers 2000-01, Rice University, Department of Economics.
- Martin Feldstein & Charles Horioka, 1979.
"Domestic Savings and International Capital Flows,"
NBER Working Papers
0310, National Bureau of Economic Research, Inc.
- Boyreau-Debray, Genevieve & Wei, Shang-Jin, 2004.
"Pitfalls of a State-Dominated Financial System: The Case of China,"
CEPR Discussion Papers
4471, C.E.P.R. Discussion Papers.
- Genevieve Boyreau-Debray & Shang-Jin Wei, 2005. "Pitfalls of a State-Dominated Financial System: The Case of China," NBER Working Papers 11214, National Bureau of Economic Research, Inc.
- Mendoza, Enrique G, 1991. "Real Business Cycles in a Small Open Economy," American Economic Review, American Economic Association, vol. 81(4), pages 797-818, September.
- Xinpeng Xu, 2008. "Consumption Risk-Sharing in China," Economica, London School of Economics and Political Science, vol. 75(298), pages 326-341, 05.
- Sinn, Stefan, 1992. "Saving-Investment Correlations and Capital Mobility: On the Evidence from Annual Data," Economic Journal, Royal Economic Society, vol. 102(414), pages 1162-70, September.
- Eswar S. Prasad, 2009.
"Rebalancing Growth in Asia,"
NBER Working Papers
15169, National Bureau of Economic Research, Inc.
- Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002.
"Unit root tests in panel data: asymptotic and finite-sample properties,"
Journal of Econometrics,
Elsevier, vol. 108(1), pages 1-24, May.
- Tom Doan, . "LEVINLIN: RATS procedure to perform Levin-Lin-Chu test for unit roots in panel data," Statistical Software Components RTS00242, Boston College Department of Economics.
- Peter C. B. Phillips & Donggyu Sul, 2003. "Dynamic panel estimation and homogeneity testing under cross section dependence *," Econometrics Journal, Royal Economic Society, vol. 6(1), pages 217-259, 06.
- John F. Helliwell & Ross McKitrick, 1999.
"Comparing Capital Mobility Across Provincial and National Borders,"
Canadian Journal of Economics,
Canadian Economics Association, vol. 32(5), pages 1164-1173, November.
- John F. Helliwell & Ross McKitrick, 1998. "Comparing Capital Mobility Across Provincial and National Borders," NBER Working Papers 6624, National Bureau of Economic Research, Inc.
- Chang, Yoosoon & Park, Joon & Song, Kevin, 2002.
"Bootstrapping Cointegrating Regressions,"
2002-04, Rice University, Department of Economics.
- Roubini, N., 1989.
"Current Account And Budget Deficits In An Intertemporal Model Of Consumption And Taxation Smoothing. A Solution To The "Feldstein-Horioka" Puzzel,"
569, Yale - Economic Growth Center.
- Nouriel Roubini, 1988. "Current Account and Budget Deficits in an Intertemporal Model of Consumption and Taxation Smoothing. A Solution to the "Feldstein-Horioka Puzzle"?," NBER Working Papers 2773, National Bureau of Economic Research, Inc.
- Alun H. Thomas, 1993. "Saving, Investment, and the Regional Current Account; An Analysis of Canadian, British, and German Regions," IMF Working Papers 93/62, International Monetary Fund.
- Bayoumi, Tamim A. & Rose, Andrew K., 1993. "Domestic savings and intra-national capital flows," European Economic Review, Elsevier, vol. 37(6), pages 1197-1202, August.
- Li, Cheng, 2010. "Savings, investment, and capital mobility within China," China Economic Review, Elsevier, vol. 21(1), pages 14-23, March.
- Lawrence H. Summers, 1986.
"Tax Policy and International Competitiveness,"
NBER Working Papers
2007, National Bureau of Economic Research, Inc.
- Park, Joon Y, 1992. "Canonical Cointegrating Regressions," Econometrica, Econometric Society, vol. 60(1), pages 119-43, January.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:35217. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.