The Comparative Study Of China’s Capital Account Opening

Over the past 35 years,advanced economies opening the capital account, with the development of international economic integration and financial integration process, the developed countries have get great benefits. Since the 90s, many developing countries and regions get into capital account liberalization in order to develop national economy.But in Mexico,southeast Asia,Russia and Latin American countries happened a series of financial crisis.People realize that although capital account liberalization will bring great benefits,but at the same time if the speed of capital account liberalization and advance on the order can not adapt to the domestic situation,the rapid capital account liberalization of capital inflow and outflow will be brought destruction to the domestic economy. So when considering opening capital account,we need to coordinate with our country’s interest rate,exchange rate reform.In general,the capital account has important influence on a country’s economic policy.But in the concrete analysis of the benefits of capital account liberalization and the possible risks,suitable for the situation of capital account liberalization policy is often controversial.The reason is that people on how to evaluate the capital account openness of capital account liberalization brought about by the different understanding of earnings and risk exist.Based on this, we study on capital account openness measure,so as to establish a unified capital account openness measure index system is very important. Only in this way can the capital account of the open policy make proper arrangements.Now China has achieved fully convertible under the current account, the vigorous development of foreign trade for China’s economic development to lay a solid foundation.In the backdrop of the financial integration,the future of our country will gradually open the capital account of the controls.In the central bank group in China to speed up the basic conditions of opening capital account mature subject,it mentioned that capital account liberalization should be prudent operation,but also to move forward. Also for our country’s capital account liberalization made the short-term,medium-term and long-term arrangements,to ensure that capital account liberalization in China to obtain maximum expected earnings, reduce the risk to open.Objective evaluation for the degree of capital account liberalization, achieve the greatest degree avoid disadvantages,service economy development.We need to accurately measure to our country’s capital account openness, also for the future of our country’s capital account liberalization in order to promote the groundwork.In this paper,after studying the capital account liberalization measures of related literature at home and abroad,the advantages and disadvantages of in-depth comparison between various measurement methods of related research focus.Found that most of the measure,the use of quantitative methods,general economic variables and flow volume are used to measure on the capital account. Some use AREAER index based on the IMF and the OECD’s indicator of qualitative description,not the capital account openness to conduct a comprehensive measure of the system. Some can’t quantitative estimates from the viewpoint of capital inflows and outflows.From the general method of opening capital account,this paper set up a price based on capital flows to measure indicators of opening capital account. Because capital account opening and the offshore market also is the important process of RMB internationalization.If in the process of China’s capital account liberalization closer ties with the offshore yuan market, not only has promoting effect to the internationalisation of the renminbi, can maximize benefits to open capital account.To prevent the occurrence of risk guarantee coordination stable economic growth in China.Through the process of our capital account liberalization and the description of the status quo, we measure capital account openness of China from 1987 to 2014, and evaluate the opening capital account.