EconPapers    
Economics at your fingertips  
 

China's Capital Controls: Through the Prism of Covered Interest Differentials

Yin-Wong Cheung and Risto Herrala ()

Pacific Economic Review, 2014, vol. 19, issue 1, 112-134

Abstract: We study the renminbi covered interest differential, an indicator of the effectiveness of capital controls. It is found that the differential is not shrinking over time and, in fact, appears larger after the global financial crisis than before. That is, capital controls in China are still substantial and effective. In addition to exchange rate changes and volatilities, the renminbi covered interest differential is affected by credit market tightness indicators. The marginal explanatory power of these macroeconomic factors, however, is small relative to the autoregressive component and the dummy variables that capture changes in China's policy.

Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10) Track citations by RSS feed

Downloads: (external link)
http://hdl.handle.net/10.1111/1468-0106.12054 (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: China's capital controls: Through the prism of covered interest differentials (2013) Downloads
Working Paper: China's Capital Controls - Through the Prism of Covered Interest Differentials (2013) Downloads
Working Paper: China's Capital Controls - Through the Prism of Covered Interest Differentials (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:pacecr:v:19:y:2014:i:1:p:112-134

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1361-374X

Access Statistics for this article

Pacific Economic Review is currently edited by Kenneth S. Chan and Yin-wong Cheung

More articles in Pacific Economic Review from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2021-05-12
Handle: RePEc:bla:pacecr:v:19:y:2014:i:1:p:112-134