Research On The Comovements Among Corruption,Economic Growth And Capital Flows

Since the subprime mortgage crisis in 2007 and the financial tsunami that followed,China’s investment environment has been better than other economies,which has made China’s investment status rise internationally.However,due to the complexity of the factors affecting capital flows,the relationship between capital flows and economic growth is also more complicated.In addition,China does not have a regulatory system and preventive measures that match the rapid growth of capital flows and economic growth,and the quality of capital flows is gradually reduced,which makes some “bad” investments have a negative effect on economic growth.On the one hand,corruption can promote capital flows by relaxing access to standards,which in turn can also promote corruption.At the same time,the two also have a more obvious impact on economic growth.Benign capital flows can promote economic growth by generating technology spillovers and capital spillover effects,which in turn cannot promote economic growth.Therefore,the study of the relatively complex interrelationships between corruption,economic growth and capital flows is of great significance for coordinating the healthy development of China’s economy and maintaining financial security and stability.To this end,the paper uses linear and nonlinear measurement methods tostudy the interaction between corruption,economic growth and capital flows,and draws the following conclusions.(1)Economic growth has a depressing effect on corruption and economic growth.Capital flows have a positive effect on corruption,and institutional quality has a certain role in promoting capital flows.Capital flows have a depressing effect on corruption under the combined effect of economic scale and institutional quality.(2)Corruption is the Granger cause of capital flows,and economic growth is the Granger cause of corruption.(3)Research on hysteresis effect: Economic growth has a positive effect on capital flow,but this promotion has a certain lag;capital flow has a positive effect on corruption,but this effect has a lag,which has a positive impact on economic growth but has a certain lag.(4)Non-linear studies show that there is an “ inverted U-shaped ”relationship between economic growth and corruption.When the degree of corruption is high,the increase of capital flows can promote corruption.When the degree of corruption is low,the increase of capital flows is It will have an inhibitory effect on corruption;when the quality of the system is low,economic growth will promote corruption,and when the quality of the system is high,economic growth will have a depressing effect on corruption.Finally,based on the above conclusions,this paper puts forward relevant suggestions.