Regional capital mobility in China : Economic reform with limited financial integration
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 493-503 |
| Journal / Publication | Journal of International Money and Finance |
| Volume | 37 |
| Online published | 27 Jul 2013 |
| Publication status | Published - Oct 2013 |
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Abstract
This paper assesses the changes in the regional capital mobility in China during the period of economic reform in 1978-2008 by employing a panel time varying coefficient (TVP) model. This approach is much more suitable to model China's evolution in the regional capital mobility than a standard structural break model as China's reforms took place gradually and were often implemented over several stages. Using the TVP model, we find that (1) China's provincial capital mobility demonstrated a moderate improvement over the sample period, but worsened temporarily between 1994 and 1997. This is probably due to the government's effort to combat inflation which reduced the investment and transfers to regions; (2) regions with the most developed and least developed provinces experienced higher degree of capital mobility improvement than those in the middle. © 2013 Elsevier Ltd.
Research Area(s)
- China capital market integration, Panel time-varying coefficient model, Permanent income model, Regional capital mobility
Citation Format(s)
Regional capital mobility in China : Economic reform with limited financial integration. / Lai, Jennifer T.; McNelis, Paul D.; Yan, Isabel K.M.
In: Journal of International Money and Finance, Vol. 37, 10.2013, p. 493-503.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
