External Financial Liberalization and Foreign Debt in China
China has not been a large net capital importer during the reform period (1979-present). This is surprising because economic theory predicts it should have been in light of its low capital - labour ratio. One possible explanation with important policy implications is that foreign capital inflows may have been restricted due to the slow pace of external financial liberalization. The empirical analysis conducted in this paper lends support to this hypothesis. However, before policy makers in China can look upon external financial liberalization as a growth-inducing strategy, fiscal reform and greater levels of domestic financial liberalization are first needed.
|Date of creation:||Jan 2002|
|Date of revision:|
|Contact details of provider:|| Postal: St. Lucia, Qld. 4072|
Phone: +61 7 3365 6570
Fax: +61 7 3365 7299
Web page: http://www.uq.edu.au/economics/
More information through EDIRC
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.:
- Giancarlo Corsetti & Paolo Pesenti & Nouriel Roubini, 1998.
"Paper tigers? A model of the Asian crisis,"
9822, Federal Reserve Bank of New York.
- Ronald I. McKinnon & Huw Pill, 1996. "Credible Liberalizations and International Capital Flows: The "Overborrowing Syndrome"," NBER Chapters, in: Financial Deregulation and Integration in East Asia, NBER-EASE Volume 5, pages 7-50 National Bureau of Economic Research, Inc.
- Terry Sicular, 1998.
"Capital Flight and Foreign Investment: Two Tales from China and Russia,"
UWO Department of Economics Working Papers
9803, University of Western Ontario, Department of Economics.
- Terry Sicular, 1998. "Capital Flight and Foreign Investment: Two Tales From China and Russia," The World Economy, Wiley Blackwell, vol. 21(5), pages 589-602, 07.
- Ronald I. McKinnon, 1991. "Financial Control in the Transition from Classical Socialism to a Market Economy," Journal of Economic Perspectives, American Economic Association, vol. 5(4), pages 107-122, Fall.
- Shang-Jin Wei, 1996. "Foreign Direct Investment in China: Sources and Consequences," NBER Chapters, in: Financial Deregulation and Integration in East Asia, NBER-EASE Volume 5, pages 77-105 National Bureau of Economic Research, Inc.
- Chou, W. L. & Shih, Y. C., 1998. "The Equilibrium Exchange Rate of the Chinese Renminbi," Journal of Comparative Economics, Elsevier, vol. 26(1), pages 165-174, March.
When requesting a correction, please mention this item's handle: RePEc:qld:uq2004:304. 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: (SOE IT)
If references are entirely missing, you can add them using this form.