Abstract
This paper collected panel data of 74 countries from 1990 to 2017, and based on the Chinn-It index to depict the degree of capital account opening. Under the framework of the neoclassical economic growth model, the impact of capital account opening on economic growth was empirically tested by systematic GMM. The results show that: first, taking the overall capital account openness as the explanatory variable, the coefficient of the capital account openness of the whole sample is significantly positive. Further, considering the national differences found that high income countries capital account openness coefficient is significantly positive, but in low and middle-income countries capital account openness coefficient on economic and statistical significance were not significant, indicating that high income countries made open dividends, while in low and middle-income countries and earnings in the capital account liberalization. Finally, it proposes to open the capital account sub-projects step by step, strengthen prudent supervision in the process of further opening the capital account, and improve the regulatory legal system.
Highlights
Capital account liberalization includes the abolition of cross-border capital transaction restrictions and the abolition of foreign exchange restrictions on capital transactions
Since the end of The Bretton Woods system in 1971, capitalist countries have no obligation to restrict capital flows to maintain a fixed exchange rate. International organizations such as the World Bank have begun to emphasize the benefits of capital account opening in diversifying risks and reducing the cost of capital
What is the relationship between capital account opening and economic growth? This paper summarizes the panel data of 74 countries from 1990 to 2017 and builds an empirical model to study this
Summary
Capital account liberalization includes the abolition of cross-border capital transaction restrictions and the abolition of foreign exchange restrictions on capital transactions. Open capital account is in the process of our modernization drive must be crossed a threshold, on the other hand, under the background of our country economy the new normal, in order to achieve high quality development, improve the international voice and the internationalization of the RMB will need to be done under the condition of a more open, on May 7, 2020, the central bank issuing the "foreign institutional investors in securities and futures investment funds management stipulation" , one of the biggest changes in allowing qualified investors choose remit money currency and timing and greatly simplifies the investment income of export formalities These policies show that China's determination to further open its capital account to the outside world has not wavered.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
