A Study On Developing Countries' Capital Account Opening

Strict capital controls has been an important tool for implementing economic development strategies in developing countries after the World WarⅡ. However, along with the deepening of economic globalization, many countries began to abandon this tool and open their capital accounts from the late 1970s. It has formed a historic process of global concern in 20 years. With the opening of China's current account and the accession to WTO, more and more attention has been paid to the process of China's capital account liberalization. Therefore, this paper attempts to play a role in China's capital account liberalization through the study on the theories and practices of developing countries′capital account opening.This paper includes four chapters,the main contents are as following: In chapter one, this paper starts with a brief discussion on the definition of capital account liberalization. After that, it makes a historic review on the background of capital account liberalization in developing countries during the past three decades. Then this paper examines the benefits and costs of capital account liberalization in developing countries. The benefits of capital account liberalization are as following : to promote the rational allocation of global resources; improving labor productivity; contributing to improve the efficiency of a country's financial sector; enterprises and individuals can diversify their investments in a global scale which can reduce investment risks and increase their revenue ; To promote the dissemination of advanced technology and management experience. The main costs are : liberalizing the capital account...