Research On China And U.S. Economic Imbalances From The Financial Perspective

The economic imbalance of China and the United States has become the outstanding problem in the world economic operation. Its development bring influence to China, the United States and global economy. As a major component of global imbalance the economic imbalance of China and the United States has the general characteristics of economic imbalance, but also has dfferent feature that is U.S large current account deficit in the long-term and large-scale Chinese current account surplus.This paper reviews relevant literature and theoretial results on the economic imblance, and analyses the reasons of China and U.S. economic imbalances from the the macroeconomic and financial factors based on previeous studies. The paper focuses on the different effects of financial factors to economic imbalances in cosideration of the macoeconic factors.We set up a empirical models of economic imbalances,including some factors such as industrial structure, economic growth, saving-investment,financial integration, financial deepening and the real exchang rate, to explore the impacts of financial factors on China and U.S. economic imbalances. The results show that it is negative between the U.S. financial deepening, integration and economic imbalances, and it is positive the China financial deepening, integration and economic imbalances.According to the theory and empirical results, we find that the finacial factors bring different impacts to China and U.S. economic imbalances when they are in the current status of global production and financial sectors. And this article also gives several proposals to deal with economic imbanlances for China from both macroeconomic and financial factors.