Scale Of Capital Flight Estimation And Research

With the deepening of economic globalization, the flows of international capital also exhibit increasingly diverse characteristics. Capital flight, as a special phenomenon of the international capital flows, impact tremendously the safety of the transitional economy, it is also one factor which causes the world economy to develop unsteadily. Capital flight has become a global matter since 1980's. Massive fleeing capital brought about the debt and financial crisis as in Mexico, Southeast Asia, South Korea, Russia, which in turn further worsened the crisis, expanding the crisis scope, causing the huge damage to those countries'economy. Consequently, more and more attention has been paid to capital flight by every country. The scale of capital flight has become an important index to weigh a country's economic condition and latent crisis of its financial system. After China joined WTO, Chinese economy has become the important part of world economic system. Meanwhile, the opening-up Chinese economy is facing more fierce challenges, of which capital flight is one of important questions. Large scale capital flight has been a problem in China ever since 1990's. It is estimated by the author that during 1988-2005 the total capital flight was accumulated to 283.545 billion US dollars, with an average scale of 15.752 billion US dollars per year, whereas the total utility of foreign capital in the corresponding period is 6117.41 US dollars. In the 18 years the fled capital occupies 46.35% of the total actual utility of foreign capital in our country. Capital flight has become a huge hidden trouble for the development of Chinese economy. It has drawn to itself the relevant government departments'and agencies'as well as the academic attention. This capital flight counteracted the effect of the actual foreign capital using in our country, causing massive drains of state assets and tax revenue. It also affects the conductive mechanism of monetary and financial policy, weakening the effect of the macroscopic policy. And it will influence significantly the formative mechanism of Renminbi exchange rate and the security of Chinese financial system. Therefore, it is of practical significance to the security of Chinese financial system as well as the stable development of Chinese economy to analyze theoretically the reasons, the channels as well as the influence of capital flight in China in the light of Chinese economy development and the money market's situation, and to propose pertinent policy suggestion...