China’s Experience in the Process of Financial Globalization

The article examines the country’s strategy to “enter” the process of financial globalization. China’s embrace of globalization differs from many countries. In globalization processes, the financial component began to play a key role, giving multidirectional impulses to the development of the world economy. Financial globalization has engulfed all developing countries, which began to deregulate financial markets and promote capital liberalization, exposing national systems to systemic risks. The author proves the nature of China’s policy of “entering” the process of financial globalization, alternative from other countries, and describes the stages of introducing restrictions on the flows of speculative capital, the development of the stock market, as well as step-by-step decisions of the authorities to liberalize the conditions for the entry of foreign capital into the country. The article proves that the “moderate” nature of China’s strategy, the late opening of financial markets gave positive results for the country’s economic growth and the stability of the financial system. At the moment, China is actively opening its economy to foreign investors and capital without “shocks” and sets itself the goal of becoming a player that forms the rules in the world market.

Austerity Programs in Argentina and the Structural Continuity of Extractivism: A Feminist Perspective

The government that took office in Argentina in December 2015 shaped a mode of development oriented toward finance and extractivism, trade and capital liberalization, and austerity policies. One of the main goals was to reduce the fiscal deficit and to lower domestic production costs in order to increase international competitiveness. Many measures implemented, such as the pension reform of 2017, budget cuts in gender-sensitive areas, and the change in the nature of social policies, had a differential impact on women and LGBT people when compared to men. However, beyond the measures taken by a particular government, the characteristics of extractivism and land concentration are structural dimensions with profound biases in their impacts in terms of gender.

Cash Flow and Profit Impact on Capital Account Liberalization-Investment Growth Nexus in Nigeria: An Aggregated Firm Case

The article examines the firm’s investment growth effect following capital liberalization and financial constraints. It employs firm-level aggregated data of 80 firms for the period of 2006 to 2016. Employing the differenced dynamic panel regression technique, the analysis has revealed among others that investment growth appears to be significantly determined by cash flow (internal), thereby indicating the presence of profound financial constraint among firms in all industries. Second, the capital account liberalization appears to drive investment more through the indirect channel (capital/credit availability channel proxied by cash flow). Third, capital account liberalization-investment growth nexus appears to be less sensitive and significant with high profitability. This could be attributed to “profit flight” or repatriation of profit by foreign investors who may not necessarily prefer ploughing back of profit, which has implication for further expansion of investment among firms. This suggests that the level of capital openness is still low; hence, there is a need for further liberalization of the capital account with some mandate of profit ploughing back.

El sesgo de género en la política de austeridad de Argentina, 2015-2019. Una mirada desde la Economía Feminista

The government that took office in Argentina in December 2015 configures a mode of development oriented to finance and extractivism, trade and capital liberalization and austerity policies. It looked to reduce the fiscal deficit and lower national production costs in order to increase intenational competitiveness. So, a series of measures were carried out that negatively impacted on women and LGBT people. The pension reform of 2017, the dynamics in the world of work, budget cuts in gender-sensitive areas and the change in the nature of social policies are some of the examples that we analyze in this paper. The objective is to analyze the incidence that this austerity program had on women and, where it can be analyzed, on LGBT people in Argentina.

The Vietnam’s financial sector in the context of ASEAN financial integration

The paper focuses on (1) discussing framework of ASEAN financial integration and initiatives, commitments made by member countries which include financial service and capital liberalization, financial market and payment system integration; (2) analyzing the actual situation of the Vietnam’s financial sector in relation to other ASEAN countries concerning the financial depth, bond and stock markets, banking activities and financial intermediaries, foreign capital flows and financial openness; and (3) presenting benefits and risks of the ASEAN financial integration process of Vietnam

Capital flows, real exchange rates, and capital controls: What is the scope of liberalization for Tunisia?

This paper deals with an important aspect of Tunisian economic and political decisions related to the opportunity for currency convertibility. Tunisia has established its current currency convertibility and has taken steps to achieve full convertibility of the dinar by gradually removing capital flow obstacles. Theoretical and empirical literature suggests that capital account liberalization generally leads to capital inflow in developing countries, generating an appreciation in the real exchange rate (RER) and thus a loss in competitiveness. However, preserving competitiveness is a key challenge for monetary authorities, who have to conciliate these two apparently conflicting purposes. To guide their decisions with respect to the prescribed procedure for capital liberalization, we need to evaluate the impact of each capital component flow on the RER. The question is addressed by analyzing impulse response functions (IRF) resulting from a VAR model, covering 1970 to 2010 and gathering the RER, its fundamental determinants, monetary variables and an estimated capital control (CC) variable. Results show that a relaxation of CC overappreciates the RER to its long-term level, and liberalizing portfolio investment is the most compromising for competitiveness.