Does Capital Account Liberalization Affect the Financial Stability: Evidence from China
DOI:
https://doi.org/10.6000/1929-7092.2015.04.15Keywords:
Capital account liberalization, Financial risk, Financial stability, Finite Distributed Lag ModelAbstract
This paper seeks to investigate the relationship between capital account liberalization and the financial stability in China. Furthermore, The Finite Distributed Lag Model is employed to quantify relationship between capital account liberalization and monetary crisis. And a general conclusion can be drawn that capital account liberalization is harmful to the stability official market in one year period, while the overall capital account liberalization effect can facilitate China's financial stability in a long run. Moreover, some suggestions are provided on China's capital account liberalization policies.
References
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http://dx.doi.org/10.5089/9781589061170.084
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Granger, C. W. J. (1969). ""Investigating Causal Relations by Econometric Models and Cross-spectral Methods"". Econometrica 37 (3): 424-438.
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Hali Edison, Michael Klein, Luca Ricci and Torsten Slok (2004). “Capital Account Liberalization and Economic Performance: Survey and Synthesis”. IMF Staff Papers, vol. 51, 2.
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http://dx.doi.org/10.5089/9781589061170.084
Cromwell, Jeff B. et al. (1994). Multivariate Tests For Time Series Models. SAGE Publications.
Dickey, D. A.; Fuller, W. A. (1979). ""Distribution of the Estimators for Autoregressive Time Series with a Unit Root"". Journal of the American Statistical Association 74 (366): 427-431.
http://dx.doi.org/10.2307/2286348
Eichengreen, B., & Leblang, D. (2003). Capital account liberalization and growth: was Mr. Mahathir right? International Journal of Finance & Economics, 8(3), 205-224.
http://dx.doi.org/10.1002/ijfe.208
Eichengreen, B., Rose, A. K., & Wyplosz, C. (1996). Contagious currency crises. National Bureau of Economic Research. working paper series, No. w568.
Furman, J., Stiglitz, J. E., Bosworth, B. P., & Radelet, S. (1998). Economic crises: evidence and insights from East Asia. Brookings papers on economic activity, 1-135.
http://dx.doi.org/10.2307/2534693
Goldstein, M. (1999). The Asian financial crisis: Causes, cures, and systemic implications (Vol. 55). Thunderbird International Business Review, 41(6), 721-728.
Granger, C. W. J. (1969). ""Investigating Causal Relations by Econometric Models and Cross-spectral Methods"". Econometrica 37 (3): 424-438.
http://dx.doi.org/10.2307/1912791
Hali Edison, Michael Klein, Luca Ricci and Torsten Slok (2004). “Capital Account Liberalization and Economic Performance: Survey and Synthesis”. IMF Staff Papers, vol. 51, 2.
Henry, P. B. (2006). Capital account liberalization: Theory, evidence, and speculation. National Bureau of Economic Research, working paper series, No. w12698.
Obstfeld, M. (1995). The logic of currency crises. Springer Berlin Heidelberg
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Published
2015-09-30
How to Cite
Yuanyuan Shen, Y. S., & Yang, L. (2015). Does Capital Account Liberalization Affect the Financial Stability: Evidence from China. Journal of Reviews on Global Economics, 4, 152–158. https://doi.org/10.6000/1929-7092.2015.04.15
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