Chinese Capital Account Liberalization And Financial Deepening Relationship Between The Empirical Analysis

It is inevitable for China to open its capital account if it wants to play a significant role in the world economy and new finance system as a great power. And China' s entry into WTO boosts its capital account liberalization. However, the discussion of how to realize China' s capital account liberalization step by step has not been in one mind. So official and academics should pay more attention to consider capital account liberalization in depth, and this paper is written under such a background in order to study the subject.In this paper, China's capital account liberalization is the thread running through the whole discussion. In short, we focus on four issues about China' s capital account liberalization: theory, current framework, empirical evidence study and strategy study. The first part: It starts with the summary of theory capital account liberalization and financial deepening. The second part: the actuality of China's capital account liberalization and financial deepening are summarized, also the history of them is discussed. The third part: using the existing economic theory and regressive models in econometrics analyze the effects of capital account liberalization to financial deepening. At last, on the basis of the above analysis, it focuses on the strategy, which concludes some recent policy issues related to this reform.China's capital account system capital evolvement. but also liberalization is not only the practical demand of the the urgent need under the rules of WTO. However, account liberalization is a historical task that requires to be pushed impersonally. More researches need to be worked over and relevant legal systems as well as the measures of supervision need to be well prepared.