The Research On The Change Of Cross-border Capital Flows Under The Background Of Opening Capital Account

Under the background of capital account liberalization, cross-border capitalflows have always been a hot topic in the research of the economy. After the financialcrisis of2008, the most important events that influence the global capital flowsappear constantly. European debt crisis, Quantitative Easing, United States fiscal cliffand the structural transformation of the economy in China Will all increase theuncertainty of global capital flows, and it also highlights the importance of study ofcross-border capital flows under the circumstances of opening capital account. As thelargest developing country, China’s capital liberalization is not only involves theRMB Internationalization, it also has most closely connection with China’s financialreform and macroeconomic stability.In this context, this paper analyzes the character of capital flows deeply fromhistorical perspective by comparison, and discusses the relationship among capitalflows, exchange rate, asset price. This paper is divided into fi ve chapters. The firstchapter is introduction, mainly introduced the background and significance ofresearch topic. The second chapter expounds the current related theory aboutcross-border capital flows. The third chapter discusses the measure of opening capitalaccount and the scale of capital account liberalization in China. Simultaneously thispart also analyses the form and term structure of cross-border capital flows amongUSA, China and Japan. The fourth chapter is the empirical analysis of capital flowshocks. By using the SVAR model, this part has studied the interaction amongcross-border capital flows, capital market and exchange rate market. In the view ofthe similarity between China and Japan, we take the empirical results in Japan asreference for China’s further opening of capital account. The last part is the policySuggestions and future outlook of cross-border capital flows.