| Capital account liberalization is an important component of China’s reform and opening up and comprehensive deepening of economic reform.The process has not yet been completed,and it has shown obviously phased.In 2017,the 19 th National Congress of the Communist Party of China re-emphasized the need to “ strengthen beyond expectations” to promote “higher level of openness” in the financial industry and other fields,and to systematically reflect and follow up on the process of China’s capital account liberalization,so as to provide academic reference for follow-up policy actions.Therefore,the topic selection of the paper has important practical significance.The paper explains the evolution of China’s capital account liberalization;based on the changes in regulatory regulations,this paper uses indexing method,which is based on the equalization method(0-3,3 means complete openness),to examine the opening process of China’s capital account liberalization,and empirically analyzes the impact of the process;based on the empirical results and their interpretation,this paper proposes policy recommendations and points out the follow-up topics.The main findings of the paper are:1.China’s capital account liberalization has obvious phased characteristics.The results of the paper show that China’s capital account liberalization has undergone strictly prohibited,from 1985 to 1996;slow start,from 1996 to 2004;and rapid advancement,from 2005 to 2017.The openness interval is 0,6%-16%,18%-53%.At the end of 2017,China’s capital account openness is 48%.In the process of China’s capital sub-project account liberalization,the account of direct investment is fastest,and the account of other investment and securities investment are the slowest.2.The stability of Macroeconomic and the development of financial market have an important impact on China’s capital account liberalization.The excessive GDP growth negatively affected the capital account liberalization,the coefficients are-0.04;the depth and the breadth of financial markets have positive effects on capital account liberalization,the coefficients are 0.26,0.004.China’s economic growth is stable and moderate,the financial system is gradually improved,the financial market is vitality,it can resist external shocks more effectively,and capital account liberalization can be enhanced.3.Cross-border investment and foreign trade promote China’s capital accountliberalization.The correlation coefficients between foreign direct investment,import and export trade and China’s capital account liberalization are 2.03 and 0.04.The foreign investment in China and the accelerated pace of “going out” of Chinese companies have led to rapid growth in cross-border capital transactions and resource allocation,Promote the liberalization of China’s capital account.4.China should expand the capital account liberalization steadily and coordinately.China should further develop cross-border investment and foreign trade on the basis of moderate economic growth and stable development,and promote financial market deepening and financial structure optimization.,and coordinating the planning of the order and speed of capital account liberalization.From the perspective of regulatory regulations,the paper uses the indexing method of equalization and the weighted average index synthesis method to investigate the process of China’s capital account liberalization and its influencing factors,which expands the research perspective and measurement methods.However,due to the availability of data and the selection of variables,the paper does not include the International economic indicators,and does not conduct international comparisons.it will be followed up and improved. |
