Capital Account Openness and Financial Stability: Empirical Analysis Based on the Data of China between 1998 and 2015
This paper investigates the relationship between capital account openness and financial stability from 1998 to 2015, and inspects some advice that has profound guiding significance for capital account opening.First, we construct FSI (financial stability index) with principal components analysis, which is based on four dimensions, microcosmic financial institutions, medium financial market, macroeconomic operation and external risk.Then, we adopt the VAR and VECM model to study how capital account openness affects financial stability, and focus on capital subaccount opennesss effect, including FDI and security investment openness.The findings prove that capital account openness is beneficial to financial stability.Especially, FDI openness is positive to financial stability, while stock investment openness is negative to financial stability.Whats worse, it can cause the accumulation of financial risk.Therefore, we should be cautious about the openness of security investment.
Capital Account Openness Financial Stability Principal Components Analysis Co-integration Test
AN Hui FU Tuo WANG Linlin
Faculty of Management and Economics, Dalian University of Technology, Dalian, China, 116024
国际会议
日本
英文
64-68
2017-07-01（万方平台首次上网日期，不代表论文的发表时间）