TITLE:
Analysis of Chinese Short-Term International Capital Flow Capital Motivation
AUTHORS:
Feng Qiu
KEYWORDS:
Short-Term International Capital Flows, Interest Rates, Exchange Rates, Asset Prices, GDP Risk Fluctuations, VAR
JOURNAL NAME:
Modern Economy,
Vol.10 No.3,
March
29,
2019
ABSTRACT: Based on the existing basis, this paper analyzes the
short-term international working capital. In addition to considering the
interest rate, exchange rate and asset price factors, it also incorporates the
fluctuation risk factors of GDP for comprehensive consideration. This article
uses the quarterly data of 2000Q1-2016Q3 to build a VAR model of quarterly
data. The results show that Chinese short-term international capital flows are
explained by their own changes to a large extent; among the four factors,
exchange rate and asset price factors have the greatest impact, and arbitrage
and DGP risk fluctuations have the weakest impact, indicating that investors
are at the national level. Economic fluctuations and spreads are not sensitive,
and the purpose of short-term international capital is to obtain the benefits
of assets and exchange rates.