Qualitative And Quantitative Analysis Of China’s Capital Control

In the new century, with the strengthening of financial globalization, economic exchanges and cooperation are developed widely and deeply between countries. International capital flows cause a series of economic problem, especially under the background of the global financial crisis.On the basis of the different group of the capital control, this paper sketched the different theories and analysis it’s adaptability to produce new thought about the capital control. The paper analysis the same problem in a new frame and angle, and put forward reasonable proposals of opening of capital for our country under the global financial background.We can analysis the capital control in qualitative and quantitative method, qualitative analysis start from the policy perspective and Quantify the policy to judge the degree of the capital control. There are many quantitative analysis method for the capital control, the paper reviewed different methods and analysis it’s limitations of adaptability to choose the appropriate method. The paper choose investment and saving theory and add new factors to analysis the capital control and it’s trend. Then compare the outcomes and the policies to observe it’s degree of math, and judge the degree of capital control in our country.The investment and saving theory analysis shows considerable strict capital control from1990to2011, and the effectiveness of capital control achieve the peak at1997the bottom at2007. The paper also analysis the effectiveness of capital control in the long term, and math it with the literatures.Under the frame of the theory of investment and saving, the outcome can’t matched with the reality well. Feldstein and Horioka (1980) used the same method to analysis the OECD countries, however the outcome were contrary with the reality which we called "F-H" mystery. The paper try to explain the "F-H" puzzle with the combination of traditional and behavioral economic theory.Under the basis of the analysis and the background of the international finance, although the capital control can produce low efficiency in the market economy, our tender financial system will exposed in the fluctuation of the international finance especially under the background of the financial crisis. Our government must improve the domestic financial system and implement the macro economy policy, never give up necessary capital control during the process of capital openness.