Study of Capital Flows Effect on Regional Economic Development

Abstract

Speculativeness and unstable short-term capital flows will greatly influence the country’s financial stability and economic development. Summarizes the impact “push–pull” China short-term capital flows are mainly: interest rate both at home and abroad, and expect to spread exchange, domestic capital market price and the domestic price in commodity markets, and access to the profound economic analysis. This paper the empirical study of China’s short-term capital flows the relationship and the influence factors and monthly data from January 2004 to March 2009, we found a positive correlation relation communication, capital market interest rates, the price of commodity market price and short-term capital flows negative correlation with the expected, exchange rates and short-term capital flows, expected the greatest contribution of exchange rate is short-term capital flows.