Comparative Research On The Relation Between Financial Liberalization And Financial Crisis

China facing the complex international economic and financial environment has been the formal member of WTO. Financial liberalization is a necessary requirement for a country strong in economy development and also a necessary process that china has to undergo. Now, china is facing the profound reform which includes banking reform, meliorating the exchange rate mechanism and so on. It's realistically meaningful for the research in the connections between the financial liberalization. and financial crisis. This dissertation is a study of financial crises in the developing countries from the perspective of financial liberalization factors that bring about financial crises and their lessons to be drawn by china to keep financial disasters off. This dissertation mainly study the example of Korea and offers: the gradual financial liberalization is more suitable to the practice of the developing country. Lower finance deficit and moderate banking system can be the guarantee of the success of the financial liberalization. The necessary policy we should take is to enforce financial liberalization together with trade liberalization. Keeping the balance of payments is also important to get off the financial crisis. This dissertation also describes the possible factors which may lead to the crisis during the course of current reform of financial system and finally make some advice for reconstruction of stability of financial system.