Regional capital mobility in China : 1978-2006

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)1506-1515
Journal / PublicationJournal of International Money and Finance
Volume30
Issue number7
Publication statusPublished - Nov 2011

Abstract

We examine cross-region capital mobility in China and track how the degree of mobility has changed over time. The effects of fiscal and redistributive activities of different levels of government in China on private capital mobility are taken into account. Our results indicate that there was a significant improvement in capital mobility over time in China, particularly for private capital in the more developed regions. The central and provincial governments, via their taxation, spending, and transfers, loosen the relationship between private saving and investment and appear to promote capital mobility, particularly for less developed regions. There are considerable differences between more and less developed regions in terms of the degree of capital market integration and the improvement in capital mobility over time. The results have important policy implications on global re-balancing as well as regional development gap and risk-sharing within China. © 2011 Elsevier Ltd.

Research Area(s)

  • Chinese capital market integration, Chinese cross-region capital mobility, Feldstein-Horioka, Saving-investment relationship

Citation Format(s)

Regional capital mobility in China : 1978-2006. / Chan, Kenneth S.; Dang, Vinh Q.T.; Lai, Jennifer T. et al.

In: Journal of International Money and Finance, Vol. 30, No. 7, 11.2011, p. 1506-1515.

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review