Influencing Factors of NFDI Capital Volatility in the Process of Capital Account Liberalization
Available Online April 2016.
- https://doi.org/10.2991/emim-16.2016.239How to use a DOI?
- Volatility of capital flows; Capital account liberalization; VAR model; Impulse response analysis
- 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.
- 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 -