Dynamics of gross capital flows and financial stress in China

Lirong Wang, Jinnan Zhou and C. Hueng

Finance Research Letters, 2022, vol. 44, issue C

Abstract: In a time series analysis for China, we support an argument from cross-sectional studies that it is necessary to analyze gross capital inflows and outflows separately, rather than focusing only on net inflows, because they are affected by different global-common and country-specific factors. Particularly, although not having experienced extreme financial crisis episodes, China's capital flows are influenced by both global and domestic financial stress. Global risk pushes foreign capital to China and retrenches China's foreign investments. Domestic financial stress reduces foreigners’ investments to China, but does not affect domestic investors’ investments abroad.

Keywords: Gross capital flows; Global risk; Chinese financial instability (search for similar items in EconPapers)
JEL-codes: E44 F31 F32 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612321001227
Full text for ScienceDirect subscribers only

Related works:
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:eee:finlet:v:44:y:2022:i:c:s1544612321001227

DOI: 10.1016/j.frl.2021.102041

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().