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The Study Of The Influence Of Open Economy On Financial Efficiency

Posted on:2004-08-30Degree:MasterType:Thesis
Country:ChinaCandidate:Z R GuoFull Text:PDF
GTID:2156360125955679Subject:Finance
Abstract/Summary:PDF Full Text Request
In modern monetary economy, the financial factor is exerting an increasingly greater influence on the development of national economy. And empirical study has proved that enhancing the financial efficiency is one of the important ways to improve the impetus of finance on economy growth. With the development of financial globalization, the fact of open economy has become one of the important factors that affect the financial system all over the world. From the new point of efficiency, the author studies the impact of open economy on the country's financial system or even on the whole economy; and, taking account of the fact of China, provides corresponding policy suggestions about how to enhance the financial efficiency taking advantages of the open economic condition, so as to maintain financial stability.In the first part of the paper, the financial efficiency is defined in three different levels: macroscopic, microscopic and financial market level, and then analyzed with regard to its relation with finance stability, on the base of which, the impetus of open economy to financial efficiency is analyzed in the following way: with the open economic condition, the free flowing of capital and the dispersion of risks are helpful for the distribution of resource in the world according to Pareto criterion as well as for the improvement of macroscopic financial efficiency for the open countries; and the access of foreign financial institutions can increase the competitive pressure on local financial institutions, sequentially, be helpful to eliminate the X-inefficiency existing in the local financial institutions, besides, it helps to offer some financial services that are not attainable from the local financial institutions, and to promote the efficiency of our native microscopic finance and the financial market as well. However, it is still possible for the open economic condition to bring about some disadvantages, for it will probably enlarge the negative effects initiated by the financial inefficiency, or even eventually result in financial crisis, which will be easily concluded when analyzing the theoretical model of asymmetric-information and moral-hazard, hence studying the Southeast Asian Financial Crisis in 1997empirically.In the final part of this paper, based on the study on the currently financial efficiency situation in our country and its influencing factors, taking both the theoretical factors and the actuality of China into consideration, the author puts forward some policy suggestions about how to open appropriately, and how to improve the financial efficiency of our country under the very current open economic condition while maintaining financial stability, such as to implement the real manageable floating exchange rate system; to open capital account with right step; and to implement open protect policy in the financial markets, and to undertake the most things of increasing the competitive strength of the local financial organization as well as maintaining financial stability through the improvement of financial efficiency.
Keywords/Search Tags:open economy, financial efficiency, financial stability.
PDF Full Text Request
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