The Compilation And Application Of The Model Of International Flow Of Funds

With the development of financial liberalization and globalization, the scale of international capital flows continues to expand, and capital financialtransactions between countries become more frequently.This makes financial markets more opening, injects vitality into the development of all countries, and especially makes the capital of developed countries developing more interested in developing countries, therefore developing countries can utilize more foreign capital.But at the same time, the expansion of international capital also brings a series of other problems,such as sharp fluctuations in international capital market caused by frequent international capital flow,and the worldwide financial crisis comeing with.International capital often unbalanced flow between the developed countries and the developing countries, the real economy and virtual economy around the world, and different countries. Practically speaking, regional differences exists in every country s direct investment, different levels of securities investment can be found in countries with different development levels, and the unbalance between the reserve account is particularly significant between developed countries and developing countries---developed countries official reserves changes relatively smooth, while the developing countries on the contrary. The statistics and research on international capital flow is very important for IMF. The balance of payments data publis hed annually records the data of national trade and financial transactions. Many scholars analyze the international capital flow deeply.Based on these, this paper comprehensive measured the foreign capital flow of all countries around the world and deeply studied the foreign capital flows between each country. The process of Compiling IFOF is systematic and hierarchical, and IFOF has two notable features. the first, it can comprehensively reflect each country s foreign capital financial transaction, which covers assets and liabilities, in one account. The second,and most important, it can measures the scale of capital financial transactions between two nations, but the previous research did nothing to solve this problem.Firstly, base on the balance of payments of each country and bythe method of domestic flow of funds, we can design the international of flow of funds of account(IFOFA). The framework and the structure of the table is similar to the domestic flow of funds. IFOFA records of each country s capital financial transactions project and the source and destination of it. IFOFA meet certain balance between, andit is bases of we compiling the international flow of funds table ofmatrix (IFOFM) and in-depth analysis.Secondly, based on the IFOFA, we can compile the IFOFM. TheIFOFM has two kinds of forms of representation, the one is informof Country Country, another is in form of Country Transaction. The IFOFM in form of Country Transaction can be conver ted by the IFOFA, The Country Transaction IFOFM is consistsof two parts, one is capital financial liabilities matrix of Country Trade, the other is financial capital assets liabilities of TransactionCountry. The former record data of each country s liabilities items, which record the source of the capital and financial;The latter record data of each country s assets items, which record the destinationof the capital and financial;Thirdly, further more, under the assumption of fixed transaction income share and fixed transaction expenditure share, using the method ofliabilities flow transferring and assets flow transferring method, we transferred the IFOFM of Country Transaction into Country Country. It can record of the investment from a country to another. atthe same time it also recorded the liabilities from country to another.Fourthly,based on IFOFM, we can calculate a series of related coefficient, we can analyse the international capital financial transactions comprehensively and systematically, and understand the characteristicsof financial transactions of each country, furthermore we can understand the financial transaction characteristics between two countries. Themainly analysis include the analysis of the world capital of financialtransaction pattern, the analysis of characteristics of each national capital financial transactions, the analysis of characteristics of all kinds o f capital and financial transactions and the analysis of scale of financial transactions between two countries.Finally, based on IFOFM, we can construct mathematical model analysis system, which includes the multiplier analysis model of currentaccount and liabilities, the multiplier analysis model of reserve assetsand assets, the associated model of assets and liabilities of a country, the associated model of assets and liabilities among countries. Based on these mathematical model system, we can understand how the physical transaction impacted the financial transactions,how the reserve assets impacted the financial transactions, at the same time weanalyzed the financial transactions between a country to the other and also analyzed the financial transactions among the international alliances...