The Study Of The International Capital Flow Upon The Perspective Of The General Equilibrium Theory

International capital flow is a very important economic relationship between countries in the world. In recent years, international capital flows have been expanding, and its speed is significantly speeded up. Its impact on the world economy is also growing, and sometimes its impact on world economy is even greater than international trade. Today, accompanied by the globalization of production, the scale of foreign direct investment (FDI) expanded rapidly. At the same time, international capital in securities form have increased rapidly too. As a result, international capital has become more speculative and short-term. Not only developed countries have been involved in the global capital flowing, but also emerging market economies and developing countries are involved.As its scale and impact expanding, the theoretical study of international capital flows is ever-increasing and become an important part of international economics. From the early motivation theories to the recent currency crisis model, the theory of international capital flow is continuous developed by theoretical and empirical researchers as the reality changing. Until now, a theoretical system has been established in order to explain the motivations, forms, regime, impact and the reaction of the host countries.In this paper, the object of our research is also international capital flow. However, the characteristic of this paper is to use a general dynamic equilibrium framework. And different forms of capital flows are all putted into such a framework, which can be seen as an innovation in this paper. Using the models characterized by increasing returns to scale, we have made a relatively comprehensive analysis of foreign direct investment (FDI), international loans and international short-term investments. The goals of the study are to find the reasons and mechanisms of these types of international capital flows, and the impact on the macroeconomic of host countries and owner countries. This paper includes the following content: Firstly, Definitions are given, which is relevant to the content studied in this paper. Secondly, we describe the reality of international capital flows, and reviewed the relevant literature. Thirdly, foreign direct investment (FDI) has been studied. We focus on the factors that impact the size and direction of FDI, risks of FDI, and the host country effect, and so on. Fourth, we have studied the cross-border loans. We detailed analysis the two mechanisms, which have led to international debt. These two mechanisms can lead to the international debt crisis respectively. The process of the debt crisis is detailed given in this paper. Fifthly, international short-term capital flows, that securities investment as the main forms, have been studied. Focus on the analysis of international hot money, we hope to find how the short-term capital to weigh the benefits and risks. Finally, we carried out empirical analysis using the data from China. In particular, we focus on analysis of China's FDI and short-term capital flows.Theoretical results show that, economic globalization and financial liberalization create the conditions for international capital flows. International spread is the fundamental factor to attract all kinds of transnational capitals. At the same time, the risk also has the same effect with spread. However, different forms of capital also have their own characteristics. On the other hand, different forms of capital flows have different effects. In general, the international direct investment can promote long-term economic growth in the host country; and international short-term capital flows can often lead to macroeconomic short-term shocks, even if it could provide liquidity to the host capital market. The impact of international loan is between the two kinds above. Under the condition of effective management and usage, it will help the macroeconomic of host country. Through empirical analysis form China, we have partially proved the theoretical conclusions mentioned above. At the same time, empirical analysis is also beneficial to China's economic policy-making.