Proceedings of the 6th International Conference on Electronic, Mechanical, Information and Management Society

Influencing Factors of NFDI Capital Volatility in the Process of Capital Account Liberalization

Authors
Lu Peng
Corresponding Author
Lu Peng
Available Online April 2016.
DOI
https://doi.org/10.2991/emim-16.2016.239How to use a DOI?
Keywords
Volatility of capital flows; Capital account liberalization; VAR model; Impulse response analysis
Abstract
This paper measured the influencing factors of NFDI capital volatility hope to prevent the risk of Capital Account Liberalization, while the Capital Account Liberalization has come to a substantive stage in China. Based on the existing literature, this article select the Sino US interest rate differential, onshore and offshore spreads, exchange rate expectations and capital account openness degree as four variables and analysis this four variables’ influence on the Volatility of NFDI capital flows by the VAR model using the monthly data from 2006 to 2014. The results show that exchange rate expectations and capital account openness are the most significant factors, and when the national financial environment gradually stabilized, the influence will gradually decrease. So we suggest that the first thing is to speed up the reform of the exchange rate market, which can help to form a virtuous cycle of interest rates, exchange rates and capital account liberalization, and then the capital account liberalization will get twice the result with half the effort.
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Proceedings
6th International Conference on Electronic, Mechanical, Information and Management Society
Part of series
Advances in Computer Science Research
Publication Date
April 2016
ISBN
978-94-6252-176-6
ISSN
2352-538X
DOI
https://doi.org/10.2991/emim-16.2016.239How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

TY  - CONF
AU  - Lu Peng
PY  - 2016/04
DA  - 2016/04
TI  - Influencing Factors of NFDI Capital Volatility in the Process of Capital Account Liberalization
BT  - 6th International Conference on Electronic, Mechanical, Information and Management Society
PB  - Atlantis Press
SP  - 1171
EP  - 1174
SN  - 2352-538X
UR  - https://doi.org/10.2991/emim-16.2016.239
DO  - https://doi.org/10.2991/emim-16.2016.239
ID  - Peng2016/04
ER  -