Balance Of Payments "double Surplus" In The Formation Of Motivation And A Way Out

The internal economy has been inosculated with the external economy by the fast developed economic globalization for all countries around the world. The international economic runoffs have also been improved a lot. The balance of payments of one country is just the most complete record to reflect those runoffs. Since the middle of 1990s, China's BOP structure has always been disaccord with BOP phase theories. And it shows its unique character, which is double-surplus. From the year 1994, China's BOP structure has always been the persistent, fast growing double-surplus structure. To the year 2006, the total account of the double-surplus has been over one thousand trillion us dollars. Of course, as the consequence of the huge inflow of foreign capital and the great improve of export, the double-surplus plays an important role in China's development. However, what deserve our more attentions are the reasons that result in the surplus and the influences of the surplus.The paper firstly describes the structure and scale of China's double-surplus systematically. From the view of current account surplus and capital and financial account, it analyzes the components of the double-surplus comes from cargo sub-account of the current account and the direct investment of foreign capital sub-account of the capital and financial account. Then, based on the theory of internal and external economic balance, combined with the character of the surplus structure, we can educe a conclusion that the double-surplus structure comes from the unbalance of China's internal economy. And the unbalance of China's internal economy derives from the phenomenon that here in China savings is much more than investments and further more, there is little effective channels to transfer savings to investments. After we know the reasons result in the structure, the paper describes the bad effects for China's economy of the double-surplus, such as the huge welfare lost and the incidental enhancements of many kinds of risks. In the last part of the paper, many suggestions are proposed. The most important one is to solve the unbalance of China's internal economy. The balance of China's external economy relies on the balance of the internal's, and so does the structure of the double-surplus.