Research On The Impact Of Capital Control On Economic Growth Of China

The international financial crisis, emerging economies suffered a new round of massive capital inflows since 2008.more and more developing countries with capital controls to maintain domestic macroeconomic stability. However, it is worth pondering, the control policy can achieve the goal of macro economic policies, promote the national economic growth, it has also been debated problems in economics. With the accelerating process of China’s reform and opening up the deepening, domestic and international economic environment is constantly changing, the system of capital control is facing increasing pressure, the validity of capital control is inevitably affected by the. Therefore, from the aspects of theory and practice to clarify the capital controls the impact on economic growth, to promote the gradual opening of capital projects of great significance.Based on the analysis of capital controls at home and abroad related research results, introduced capital controls international practice and several successful patterns, summed up the policy framework, the evolution of China’s capital controls and the effect, analyzes the current situation and the policy choice. Finally, we construct a theoretical model of a small open economy, capital controls will be subdivided into physical capital control and financial capital controls, derived from the model evolution relationship between capital controls and the rate of economic growth, based on the theoretical analysis, by means of capital controls IMF annual report published on a regular basis, select the appropriate indicators of capital the control effect on economic growth by empirical analysis, draw the conclusion:first, the real capital or financial capital controls is conducive to economic growth, the real interest rate plays a very important role. Second, the financial capital controls obvious effect on economic growth. Third, the capital controls on the role of economic growth showed a different country.On the basis of empirical analysis, this paper puts forward relevant policy suggestions to perfect the mechanism of gradual opening of capital, to maintain the stability of economic growth:first, in the premise of effective prevention and control of risk, the rational use of capital controls, capital controls clear gradual liberalization policy orientation. Second, promote structural reform of the domestic financial market, enhance the domestic financial market depth and breadth. Third, establish a robustCapital account opening mode, the gradual liberalization of capital controls. Fourth, give full consideration to the integrity of the control of the tool itself, to ensure the effective management of capital outflow policy.Capital control as an important part of the government’s macroeconomic policies, in a fairly long period of time will still exist in different forms of capital controls on economic growth, the effectiveness of research and exploration is still in the process of capital account convertibility Chinese important topic, along with the accumulating method system of continuous improvement and practice experience the level of research in this field will continue to improve, to provide theoretical support and decision-making basis for the adjustment of national capital control.