China's International Balance Of Payments And Economic Growth Empirical Studies

Disequilibrium of balance of payments and its adjustment are always the central problem of the theory of balance of payments, but the various theories of adjustment of balance of payments based on disequilibrium of international trade(sometimes extend to current account) have little effect on directing the practice for the various country. It is mainly because that the theory is lag behind the actuality development that the tendency of international economic relations leading by financial transactions appears. Beginning with structure of international balance of payments, theory system of structure of balance of payments is established firstly. It is analyzed the actual structure between the main accounts and the structure among the secondary accounts of china, comparing with the structure of the main advanced countries and some developing countries. Then, it is applied the theory of the balance of Payments to establish theoretical model and the method of econometrics to analyze in the term of practice of equilibrium between domestic economic and balance of payments in china. Furthermore, various conditions is decomposed and deliberated to form diffident relations between the unbalance of domestic economy and the disequilibrium of the balance of payments. Finally, the growth model on the premise of equilibrium of balance of payments is applied to analyze the relationship between the net capital inflow, net trade balance (net export) and economic growth on the course of development opening to the outside world in china. The characteristic and influence changing on distinct stages of the balance of commodity trade and direct investments is researched. It is announced that the dual favorable balance of payments has significance on continue steady economic growth china. It is revealed the there are reciprocal causation relation between disequilibrium of the balance of payments and the unbalance of domestic economy by studying that evolution laws and the formation conditions of relations between the unbalance of domestic economy and the disequilibrium of the balance of payments in china. It is understand the procedure how the disequilibrium of the balance of payments affect the development of domestic economy.The multiple approach of adjustment need to be taken to service the sound stable, sustained and coordinated development of china.