Astudy On International Capital Flow Structure And Economic Growth In Asian Emerging Economies

With the development of economic globalization and trade liberalization, theAsian emerging economies gradually lessen the capital controls and step on the way ofcapital account liberalization. It brings great opportunities to the Asian emergingeconomies. A Large number of international capital flows to Asian emergingeconomies and play an important role in economic growth. At the same time,international capital flows brings the potential financial risks to Asian emergingeconomies. Under the changing world economic environment, international capitalflows between emerging economies have become more frequent, the fluctuation ofcapital flow structure has become more fierce. The change of international capitalflow structure significantly affect the mobility of international capital flows and theeconomic growth of Asian emerging economies. How to determine the scientificinternational capital flows structure, maximize the utilization of foreign investment,promote economic growth and prevent financial risks become a big policy problem inAsia ’s emerging economies. Therefore, analyzing how the international capital flowsstructure affect Asian economic growth has important significance.This article firstly build a model based on Endogenous growth theory to analyzehow the international capital flows structure affect Asian economic growth. Then thepaper describes the structure of the international capital flows in Asian emergingeconomies and analyzes the characteristic of international capital flows structure indifferent stages of economic growth. After that, in the empirical part, this paperestablish a panel regression model based on the data of seven Asian emergingeconomies between1992-2012to analyze the impact of international capital flowstructure on economic growth. The study results showed that: The structure ofinternational capital flows significantly affect economic growth. International netcapital inflows to Asian emerging economies has an important role in promoting theAsian emerging economies growth; The foreign direct investment has the biggesteffects, followed by the portfolio investment, other investment has the minimaleffects; When international capital flows reversed, ie when net capital inflows isnegative, the host country economic growth will significantly decreased. At last, thispaper proposes the principles of international capital flows structure management:actively introducing international capital, reasonably determining international capital flows structure, maximizing the utilization of foreign investment and keeping alook-out on the risk of capital flows.