Change search
ReferencesLink to record
Permanent link

Direct link
Management of Short-term Capital Flows in China
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
Linnaeus University, Faculty of Business, Economics and Design, Linnaeus School of Business and Economics.
2012 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Our essay focuses on short-term capital inflows and their effects on China’s economy.The reason for this work was the increasing vulnerability of China’s economy and the risk of newupcoming world financial crisis, all because of uncontrollable amounts of speculative capitalflows. Because of this problem, we raised a main question that we try to answer in this essayhowto reduce the possibility and the severity of the future financial crisis in China? In order tosolve this problem, first we searched for the existing theory of capital flows, mainly short-termcapital inflows. We analysed why investors choose capital flows and some specific countries,why it is profitable, but also risky and what could be done by countries, to stop these inflows orat least to diminish their effect on domestic markets. After that, we looked for past experiencesof countries faced with surges of capital flows and their measures for controlling them, weanalysed, if the theoretical tools were actually effective in reality. To finish the model, weapplied these measures to China’s economy and gave our viewpoint on what could be changedin order to avoid the dangers of short-term capital inflows. Last, we sum up the whole essay andsuggest the best mix of measures that China could use to control capital inflows as well as theireffects on the economy.

Place, publisher, year, edition, pages
2012. , 57 p.
Keyword [en]
China, short-term capital, capital flows, crisis
National Category
URN: urn:nbn:se:lnu:diva-20842OAI: diva2:541562
Social and Behavioural Science, Law
Available from: 2012-08-15 Created: 2012-07-19 Last updated: 2012-08-15Bibliographically approved

Open Access in DiVA

fulltext(774 kB)724 downloads
File information
File name FULLTEXT01.pdfFile size 774 kBChecksum SHA-512
Type fulltextMimetype application/pdf

By organisation
Linnaeus School of Business and Economics

Search outside of DiVA

GoogleGoogle Scholar
Total: 724 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 348 hits
ReferencesLink to record
Permanent link

Direct link