External Financial Liberalization and Foreign Debt in China

Laurenceson, James (2002) External Financial Liberalization and Foreign Debt in China. Discussion Paper No 304, School of Economics, The University of Queensland.

Attached Files (Some files may be inaccessible until you login with your UQ eSpace credentials)
Name Description MIMEType Size Downloads
DP304Jan02.pdf DP304Jan02.pdf Click to show the corresponding preview/stream application/pdf 385.74KB 2889
Author Laurenceson, James
Title External Financial Liberalization and Foreign Debt in China
School, Department or Centre School of Economics
Institution The University of Queensland
Report Number Discussion Paper No 304
Publication date 2002-01-01
Language eng
Subject 340203 Finance Economics
340206 International Economics and International Finance
K
Abstract/Summary China has not been a large net capital importer during the reform period (1979-present). This is surprising because economic theory predicts it should have been in light of its low capital - labour ratio. One possible explanation with important policy implications is that foreign capital inflows may have been restricted due to the slow pace of external financial liberalization. The empirical analysis conducted in this paper lends support to this hypothesis. However, before policy makers in China can look upon external financial liberalization as a growth-inducing strategy, fiscal reform and greater levels of domestic financial liberalization are first needed.
Keyword Economic development - China
Financial liberalisation - China
References Almanac of China's Finance and Banking (ACFB). (various years) English (EE) and Chinese (CE) editions, Beijing; People's China Publishing House. Almanac of China's Foreign Economics Relations and Trade (ACFERT). (various years) Hong Kong; China Resources Advertising Company. Chai, J.C.H. (1994) 'Savings and Investment in China', Savings and Development, XVIII, pp. 497-516. Chai, J.C.H. (1998) China: Transition to a Market Economy, Oxford, UK; Clarendon Press. Chou, W. and Shih, Y. (1998) 'The Equilibrium Exchange Rate of the Chinese Renminbi', Journal of Comparative Economics, 26, pp. 165-174. Corsetti, G., Pesenti, P. and Roubini, N. (1999) 'Paper Tigers? A model of the Asian crisis', European Economic Review, 43, pp. 1211-1236. Eichengreen, B., Mussa, M., Dell'Ariccia, G., Detragiache, E., Milesi-Ferretti, G. and Tweddie, A.(1998) Liberalizing Capital Movements: some analytical issues, Washington, D.C; IMF. Fishlow, A. (1986) 'External Borrowing and Debt Management', in The Open Economy: tools for policy makers in Dornbusch, R. and Helmers, L. (eds), New York; Oxford University Press, pp. 187-222. Gemmell, N. (1988) 'Debt and the Developing Countries: A simple model of optimal borrowing', The Journal of Development Studies, 24, pp. 197-213. Gillis, M., Perkins, D., Roemer, M. and Snodgrass, D. (1996) Economics of Development, New York; W.W.Norton & Company. Gunter, F. (1996) 'Capital Flight from the People's Republic of China: 1984-1994', China Economic Review, 7, pp. 77-96. International Monetary Fund (IMF). (1994) Capital Account Convertibility: review of experience and implications for IMF policies, Washington, D.C; International Monetary Fund. International Monetary Fund (IMF). (various years) Exchange Rate Arrangements and Restrictions (ERA), Washington, D.C; International Monetary Fund. International Monetary Fund (IMF). (various years) International Financial Statistics Yearbook (IFS), Washington, D.C; International Monetary Fund. Keuh, Y. Y. (1992) 'Foreign Investment and Economic Change in China', The China Quarterly, 131, pp. 637-690. Lardy, N. (1995) 'The Role of Foreign Trade and Investment in China's Economic Transformation', The China Quarterly, 144, pp. 1065-1082. Lardy, N. (1998) China's Unfinished Economic Revolution, Washington,D.C; Brookings Institution Press. Laurenceson, J. and Chai, J.C.H. (1998) 'Financial Liberalization and Financial Depth in China', Savings and Development, XXII, pp. 393-412. McDonald, D. (1982) 'Debt Capacity and Developing Country Borrowing: a survey of literature', IMF Staff Papers, 29, pp. 603-646. McKinnon, R. (1991) 'Financial Control in the Transition from Classical Socialism to a Market Economy', Journal of Economics Perspectives, 5, pp. 107-122. McKinnon, R. (1993) The Order of Economics Liberalization: financial control in the transition to a market economy, Baltimore; John Hopkins University Press. McKinnon, R. and Pill, H. (1996) 'Credible Liberalizations and International Capital Flows: the 'Overborrowing Sydrome', in Financial Deregulation and Integration in East Asia in Ito, T. and Krueger, A. (eds), Chicago; University of Chicago Press, pp. 7-37. People's Bank of China (PBC). (various years) China Financial Outlook (CFO), Beijing; China Financial Publishing House. Sicular, T. (1998) 'Capital Flight and Foreign Investment: Two tales from China and Russia', The World Economy, 21, pp. 589-602. State Statistical Bureau (SSB). (various years) China Statistical Yearbook (CSY), Beijing; China Statistical Publishing House. State Statistical Office (SSO). (1990) Zhongguo Shangye Waijing Tongji Ziliao 1955-1988 (China Statistical Data on Commerce and Foreign Economics Relations), Beijing; China Statistical Publisher. Thirlwall, A. (1989) Growth and Development, London; Macmillan. Tsang, S. (1997) 'Towards the Full Convertibility of the Renminbi' in China Review 1997, in Brosseau, M., Kuan, H. and Keuh, Y.Y. (eds), Hong Kong; Chinese University Press, pp. 235-252. Wei, S. (1996) 'Foreign Direct Investment in China: Sources and Consequences' in Financial Deregulation and Integration in East Asia, in Ito, T. and Krueger, A. (eds), Chicago; University of Chicago Press, pp. 77-101. Wong, C., Heady, C. and Woo. W.T. (1995) Fiscal Management and Economic Reform in the People's Republic of China, Hong Kong; Oxford University Press. World Bank. (various years) Global Development Finance (GDF), Washington, D.C; The World Bank.
Additional Notes ISBN: 14465523

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
 
Versions
Version Filter Type
Citation counts: Google Scholar Search Google Scholar
Access Statistics: 898 Abstract Views, 2923 File Downloads  -  Detailed Statistics
Created: Thu, 05 Feb 2004, 10:00:00 EST by Belinda Weaver (EA) on behalf of School of Economics