Abstract
Based on the rapid development of the financial integration and the emergence of global imbalances, this paper takes 49 countries multinational panel data from 1980-2011 as research samples and the state net foreign assets as the research object. In the perspective of financial integration, in order to find out the effect of financial variables on the net foreign assets, we also introduce the financial development, financial structure and financial opening variables. Through research, we can conclude that financial integration and financial opening both supplement each other, the optimization of financial structure helps to improve a country's foreign net imbalance situation, and a country's financial structure can be optimized with the improvement of integration. So we believes that China should (1) increase the diversification of foreign exchange reserves and promote the internationalisation of the renminbi. (2) Improve domestic savings-investment mechanism, develop the multi-level financial market, and improve the efficiency of the financial system and the level of innovation. (3) Reform the system of capital controls and strengthen cooperation with emerging economies, thus improving our foreign net imbalance, and achieving a smooth transition of developing countries to developed countries.
Highlights
With the development of economic globalization and financial integration, the global economic pattern has been separated and become abnormal
From the results of the regression model of the empirical model in Table 1, it can be seen that the coefficient of financial integration is positive for the net foreign assets of a country, which means that the higher the degree of financial integration, the more the enterprises and residents can be affected by the global economic structure financing and investment from abroad, reducing capital mismatch, investment will be strengthened, savings will weaken, external net assets increased
From the perspective of financial integration, this paper introduces the financial development, financial structure and financial opening And other financial variables to study the different levels of development of financial factors on the country's external net assets generated by the impact
Summary
With the development of economic globalization and financial integration, the global economic pattern has been separated and become abnormal. According to the traditional theory of international economics - the neoclassical growth model, the emerging economies with higher economic growth rate are more likely to absorb long-term capital in the process of economic globalization and can attract more capital inflows. Vol 2, No 2, 2017 prevent the currency crisis, to promote the process of internationalization of the RMB and make recommendations
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