Capital Flight Theory And Empirical Analysis

More and more experts and researchers home and abroad pay attentions and researches into the frequency and seriousness of Capital Flight with economy抯 globalization and integration, from Latin America credit crisis of l980s to the financial crisis of Mexico, the financial crisis of Southeast Asia and the financial crisis of Russia. The paper makes a researcher into the theory of Capital Flight comprehensively and deeply, meanwhile, the paper also makes positive analysis on China?capital- flight based on the theory of Capital Flight. The paper divided into five chapters: Chapter I -preface. Firstly, author concludes that the capital- flight of china is serious resulting from the analysis of facts and statistics. Secondly, the author reviews some country抯 capital- flight happened in history. Lastly the author defines the capital flight of this paper as a result of joint the analysis of different define of Capital Flight of various school and China抯 facts. Chapter 11-the analysis of the cause of capital- flight. The author outlines the causes: asset portfolio theory, differentiation treating theory, income effect theory, human capital theory, overall investment theory and public capital theory. Chapter Ill-the measurement of capital flight抯 sale. Firstly, the author introduces the existing measuring methods home and abroad: direct method, indirect method and colligate method. Secondly, because of the fact that RENMINBI still cannot be convertible and the current situation of China?economy development, the author gives a new measurement model Finally, the author makes explanatory remarks on the measurement results by the new method. Chapter IN-two methods of analyzing the element which affect the capital-flight: the method of qualitative analysis and the method of quantitative analysis. The two methods are used to study the elements, which affect the capital- flight in China. And then, the two methods are compared to show the differences. Chapter V-the ways and effects of capital-flight and precaution countermeasures: at first, the current account way and capital account way of capital- flight are introduced, then, the effects and results of capital-flight are analyzed from 5 aspects. Finally, the specific countermeasures of preventing the capital flight are put forward. The concluding remarks of the paper point out that because of the harm of capital- flight, the government intervention and control should be adopted. But at the same time, we should create and improve all kinds of environments for all the capital. That抯 the way to satisfy the essential nature of pursuing for interests of capital. It抯 also the basic way to avoid the capital- flight.