scholarly journals Capital Account Liberalization and Capital Movement in China

2021 ◽  
Vol 18 (1) ◽  
pp. 63-78
Author(s):  
Badar Alam Iqbal ◽  
Nida Rahman ◽  
Mohd Nayyer Rahman

Capital account liberalization has always been at the core of economic policymaking. China is a country which has chosen to go gradual in opening up the capital account. The present research seeks to manoeuvre aspects of capital account liberalization for the Chinese economy. An empirical investigation is run for ascertaining the particular influence capital controls has had on foreign direct investment in China which has outpaced other capital flows in the past decades. The model applied involves foreign direct investment inflows as the dependent variable while four variables are independent. The stationarity of the univariate series is checked with the use of Augmented Dicky Fuller test. The study concludes with theoretical understanding that full liberalization of the current account in China has overall benefited the economy. The outcome of the study suggests that there is no significant bearing of current account liberalization on foreign direct inflows.

Author(s):  
Jai S. Mah ◽  
Sunyoung Noh

The current paper compares the patterns of Japanese outward foreign direct investment (OFDI) in China with that of Korea. As a result of the opening up of the Chinese economy together with the accumulating foreign exchange reserves, their FDI in China has risen over the past decades. The share of Japanese FDI in China has remained less than 20 percent of Japanese OFDI as a whole, while Korean FDI in China reached two-fifths of its total OFDI. The gravity model appears to be suitable for explaining the pattern of Korean FDI in China. By industries, the manufacturing sector has accounted for as much as or over three quarters of Japanese and Korean FDI in China. The former appears to be focused more on value-added industries such as machinery contributing to transfer of advanced technologies, while the latter is relatively more concentrated on labor intensive industries contributing to employment generation.


2011 ◽  
Vol 30 (2) ◽  
pp. 65-75 ◽  
Author(s):  
Krislert Samphantharak

This paper discusses foreign direct investment from Southeast Asia to China. With the exception of some government-linked companies, most investments from Southeast Asia have been dominated by the region's overseas Chinese businesses. In addition to cheap labour costs, large domestic market and growing economy, China has provided business opportunities to investors from Southeast Asia thanks to their geographic proximity and ethnic connections, at least during the initial investment period. However, the network effects seem to decline soon after. As the Chinese economy becomes more globalised and more competitive, the success of foreign investment in China will increasingly depend on business competency rather than ethnic relations.


2019 ◽  
Vol 8 (4) ◽  
pp. 12760-12762

India with a powerful development rate is currently triumph more acclimatized with world economy. The cross outskirts are vague in a monetary market and have made influence on the Indian economy too. India after globalization has now supported the crosswise over outskirts trade and consequently has progressed with the monetary development. Moreover, we have tried to relationship exists between a portion of the factors like current account and merchandise and ventures, Foreign Direct Investment and between Capital account inflows. The examination explores the effect of Foreign Direct Investment on India's Balance of Payment for a time of 2012-2016 quarter savvy. Optional information will be made through RBI site, Journals, Research articles and papers. The investigation utilizes Regression to organize connection between dependent and free factors. Here foreign direct investment, the current and capital account as logical factors, while the balance of payments is the needy variable. The investigation is drawn for the balance of payments and a logical end is drawn for the connection of balance of payments with the free factors.


2021 ◽  
Vol 29 (2) ◽  
pp. 49-72
Author(s):  
Wei Feng ◽  
Yanrui Wu ◽  
Yue Fu

2004 ◽  
Vol 33 (2) ◽  
pp. 99-130 ◽  
Author(s):  
K.C. Fung ◽  
Hitomi Iizaka ◽  
Sarah Y. Tong

2002 ◽  
Vol 172 ◽  
pp. 1065-1103
Author(s):  
Qi Luo

This is a competent work that challenges the claim of new institutional economics and international regime theory that effective state institutions in the host country are vital to the inflow, and indeed growth, of foreign direct investment (FDI). It argues that the large amount of FDI China has attracted so far has been facilitated more by the informal societal institutions represented by strong personal networks operating in the country than by the formal state institutions manifested by the weak legal system. The author validates her arguments with a large number of anecdotes based on over 100 interviews she conducted in China.


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