China's Capital Flight Analysis - Concepts, Causes, Scale And Impact

With the development of globalization, capital flows more and more globally. After entering the WTO,China economy is merging with the global economy greatly,which not only offer China a more opening market,but also carries a lot of more severe challenges. Nowadays,the capital flows quickly,the information net is very convenient and the international competition is sharper. With the tendency of finance globalization becoming more and more obvious,the international capital flow has been more and more active. We should note that the capital flight harms the financial security of all the countries(especially the developing countries).In China,more and more capital flight has done harm to our economy. In order to remove the hidden peril,we must recognize the reason,the current situation and the controlling method of the capital flight,and then we can uphold the financial security of our country and promote the smooth development of China economy.Chapter One reviews the various definitions of capital flight theory simply. Six categories of capital flight definitions are introduced. Then three problems about capital flight theory are discussed and we give our own definition in this dissertation.Chapter Two explores the reasons of capital flight theoretically. In this chapter, we introduce ten reasons for capital flight in various countries. The reasons for China capital flight are specially referred to in this chapter. Chapter Three focuses on the fact and scale measurement of capital flight in China. Five measurement approaches are introduced and compared. Then we use the approaches in the dissertation to measure the scale of capital flight in China. From the results we can see huge amounts of capital flight happened in China since the open and reform period, especially in the 1990s. In this chapter, we also summarize the vehicles of capital flight in China.Chapter Four analyzes the influence of capital flight in one country's economy. It includes the influence which results from the capital flight in China: counteracting the effect of foreign assets policy,hampering Chinese growth of economy,shaking people's credit to RMB,helping the corruption,etc. At last, on the analyses about capital,aiming at the reasons and process of capital flight,this chapter gives several suggestions.