RE-MEASUREMENT OF SHORT-TERM INTERNATIONAL CAPITAL FLOWS AND ITS APPLICATION: EVIDENCE FROM CHINA

2018 ◽  
pp. 1-21
Author(s):  
JUNYI SHI
Keyword(s):  
Capital Flows ◽  
Direct Method ◽  
Capital Flow ◽  
International Capital Flows ◽  
International Capital ◽  
Short Term ◽  
Residual Method ◽  
Leading Indicator ◽  
Cross Correlation Analysis ◽  
International Capital Flow

In this paper, we use the improved direct method and improved residual method to re-measure the annual scale and to measure the quarterly scale of the short-term international capital flows based on the Chinese Balance of Payment table. At the same time, we use the residual method to estimate the monthly scale of the Chinese short-term international capital flows as well. Then we explain and test these calculated results. Next we apply the results to the lead–lag analysis of macro-economy. To judge whether the short-term international capital flow is a leading indicator, we apply the Kullback–Leibler information method and cross-correlation analysis method to analyze the lead–lag relationship between the short-term international capital flows and macro-economy by selecting some representative macroeconomic indicators as a reference. Our empirical analysis shows that in China, the short-term international capital flow is a leading indicator to macro-economy and a coincident indicator to Purchasing Managers’ Index. In the end, we give some conclusions and policy proposals.

scholarly journals Inflows of Capital to Developing Countries in the 1990s

1996 ◽  
Vol 10 (2) ◽  
pp. 123-139 ◽  
Author(s):  
Guillermo A Calvo ◽  
Leonardo Leiderman ◽  
Carmen M Reinhart
Keyword(s):  
Developing Countries ◽  
Latin America ◽  
Foreign Investment ◽  
Capital Flows ◽  
Capital Flow ◽  
International Capital Flows ◽  
Capital Inflows ◽  
International Capital ◽  
International Capital Flow

Half a decade has passed since the resurgence of international capital flows to many developing countries and history has, once again, shown that foreign investment is prone to repeated booms and busts. Mexico's 1994 crisis is but a recent example that highlights the vulnerability of capital-importing countries to abrupt reversals; thus, an aim of policy is to reduce that vulnerability. This paper discusses the principal causes, facts, and policies that have characterized capital inflows to Asia and Latin America. In particular, the authors examine what policies have proved useful in protecting these economies from the vagaries of international capital flow.

scholarly journals Analysis on the Impact of Short-Term International Capital Flows on Chinese Stock Market on the Basis of VAR Model

2018 ◽  
Vol 10 (8) ◽  
pp. 77
Author(s):  
Ning Wu
Keyword(s):  
Stock Market ◽  
Capital Flows ◽  
Composite Index ◽  
International Capital Flows ◽  
Capital Inflows ◽  
Var Model ◽  
Chinese Stock Market ◽  
International Capital ◽  
Short Term ◽  
The Impact

With the continuous development of global economic integration and financial markets, international capital flows more and more frequently, the frequent flow of international capital will inevitably affect the yield of Chinese stock market. This article uses short-term international capital inflows SS and Shanghai composite index R as research objects. Based on monthly data from January 2002 to October 2017, VAR model was constructed using Eviews8.0 to study the impact of short-term international capital flows on Chinese stock market. Empirical studies have found that short-term international capital flow is the granger cause of changes in the Shanghai composite index yield, while the yield of Chinese stock market will not affect short-term international capital flows. At the end of this paper, relevant suggestions are put forward according to the conclusions.

scholarly journals The Complexity of Global Capital Flows: Evidence from G20 Countries

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Xiaochen Ding ◽  
Lu Sui
Keyword(s):  
Capital Flows ◽  
Foreign Currency ◽  
Capital Flow ◽  
Market Liquidity ◽  
International Capital Flows ◽  
Panel Var ◽  
International Capital ◽  
Push Factors ◽  
Macroprudential Policies ◽  
The Government

With the high volatility of capital flow and the imbalance of capital flow between emerging and advanced economies, the complexity of capital flow management is always attractive to researchers and policymakers. This study explores how capital flows in G20 countries are significantly impacted by pull and push factors by using regressions, dynamic system GMM, and Panel-VAR models. The results show that international capital flows are significantly associated with domestic financial development, which is measured by stock-market liquidity and domestic credit. Moreover, international capital flows are affected by push factors, such as the growth of the world economy and fluctuations of the crude oil price. This study controls for real interest rate, foreign currency, and capital restriction because the government and macroprudential policies are critical influences on stabilizing capital flows.

scholarly journals An Overview of International Capital Flows and Its Impact on Chinese Financial Market

2021 ◽  
Vol 275 ◽  
pp. 01015
Author(s):  
Yunxin Yi
Keyword(s):  
Financial Market ◽  
Capital Flows ◽  
Market Integration ◽  
Complex Structure ◽  
Capital Flow ◽  
International Capital Flows ◽  
International Capital ◽  
Financial Market Integration ◽  
Global Movement ◽  
Near Future

With the acceleration of economic globalization and financial market integration, there has been a gradual increase in the amount of international capital and considerable global movement of capital flow. Due to its inherent uncertainty, immense capital flows, and complex structure, international capital flows have an enormous impact on international trade, finance flowing, and economic development for countries all over the world. This paper aims to provide a full overview of international capital flow, focusing on the internal fluctuation patterns and developing trends in the near future. Through the qualitative analysis of China’s capital flows, this paper also summarizes its major characteristics and multiple effects caused by international capital flows.

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