Research On The Sequence Of Opening Of Financial Services Trade In Developing Countries

On the promotion of FSA in WTO, a lot of countries speeded up their paces of trade in financial services. Developing countries are at the disadvantage in the international trade in financial services, they need put much more attention on the sequence of opening of trade in financial services for the maximum profits at the minimum risks. This dissertation made a systematic analysis about former literatures on financial liberalization and sequence of opening of financial services trade, and make some useful advices on sequence of opening of trade in financial services.For concluding proper sequence of opening of financial services trade to developing countries, we need study the issue from different views. For the sake of a stable financial system, Opening of financial services trade, especially the presence of a foreign establishment, should go with the enhancing in financial regulation and supervision. Liberalization in the interest rate also should not be later than the opening, in order to forming a well competitive circumstance in financial trade market. Capital account liberalization also should be later than the opening of financial market for necessary control of capital flows in some important time. Generally, time of opening of financial service trade should be selected at the time when the country's macro-economic at good state and has enough foreign exchange reserve to counteract the possible capital outflow in difficult time.