Emerging Market Economies, The State Capital Flight Mechanisms And Causes Of Explore

Emerging market economies have broken out several great monetary crisis since 1980s, and caused huge economic losses, even led into global economic turmoil. Studies have shown that the successive outbreak of global financial crisis, such as Mexico financial crisis, South East Asian financial crisis, Russian financial crisis, Brazil financial crisis, is closely related to large-scale capital flight. While counties that had monetary crisis generally had phenomenon of serious currency mismatch before large-scale capital flight happened. Whether currency mismatch constitute one of the causes of capital flight in emerging market economies? If so, what are the causes of currency mismatch? To resolve these problems is of great practical significance for emerging market economies to restrain capital flight and keep away financial and economic crisis.This article first classifies researches about the causes of capital flight of domestic and foreign scholars. It finds that the existing studies mainly attribute capital flight in emerging countries to there internal factors, and only considers the impact of exchange rate depreciatory anticipation, thus neglects the impact of the current international monetary system and exchange rate appreciatory anticipation.Secondly, the article elaborates the theory of currency mismatch through the causes and impact of it, and brings forward that currency mismatch is an inevitable result under current international monetary system.Thirdly, the article analyzes three kinds of effects of currency mismatch on capital flight, which are the balance sheet effect, portfolio effect and competition effect. The result shows that under circumstance of large-scale debt based currency mismatch, currency mismatch promotes capital flight through the balance sheet effect and portfolio effect, and that restrain capital flight through competition effect. And that under circumstance of large-scale claims based currency mismatch, currency mismatch promotes capital flight through all the three effects. Fourthly, in order to empirical test the impact of currency mismatch on capital flight, this article test the situation in China through Granger causality test, and finds that currency mismatch in China significantly promotes capital flight.At last, aiming at the causes of currency mismatch, this article put forwards temporary and permanent cure for emerging market economies to restrain capital flight.