Arbeitspapier
China's Capital Flight: Pre- and Post-Crisis Experiences
We study China’s illicit capital flow and document a change in its pattern. Specifically, we observe that China’s capital flight, especially the one measured by trade misinvoicing, exhibits a weakened response in the post-2007 period to the covered interest disparity, which is a theoretical determinant of capital flight. Further analyses indicate that the post-2007 behavior is influenced by quantitative easing and other factors including exchange rate variability, capital control policy and trade frictions. Our study confirms that China’s capital flight pattern and its determinants are affected by the crisis event. Further, both the canonical and additional explanatory variables have different effects on different measures of capital flight. These results highlight the challenges of managing China’s capital flight, which requires information on the period and the type of capital flight that the policy authorities would like to target.
- Language
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Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 5584
- Classification
-
Wirtschaft
International Finance: General
Current Account Adjustment; Short-term Capital Movements
International Financial Markets
- Subject
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world bank residual method
trade misinvoicing
quantitative easing
capital controls
covered interest disparity
- Event
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Geistige Schöpfung
- (who)
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Cheung, Yin-Wong
Steinkamp, Sven
Westermann, Frank
- Event
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Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
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Munich
- (when)
-
2015
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cheung, Yin-Wong
- Steinkamp, Sven
- Westermann, Frank
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2015
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