Currency convertibility, cost of capital control and capital account liberalization in China

2005 ◽  
Vol 10 (1) ◽  
pp. 65-79
Author(s):  
Robin Hang Luo ◽  
Chun Jiang
Keyword(s):  
Cost Of Capital ◽  
Capital Account ◽  
Capital Control ◽  
Capital Account Liberalization

scholarly journals Capital Account Liberalization: Theory, Evidence, and Speculation

2007 ◽  
Vol 45 (4) ◽  
pp. 887-935 ◽  
Author(s):  
Peter Blair Henry
Keyword(s):  
Economic Growth ◽  
Capital Investment ◽  
Cost Of Capital ◽  
Capital Account ◽  
Critical Reading ◽  
Capital Account Liberalization ◽  
Empirical Validity ◽  
Macroeconomic Impact ◽  
The Cost

Research on the macroeconomic impact of capital account liberalization finds few, if any, robust effects of liberalization on real variables. In contrast to the prevailing wisdom, I argue that the textbook theory of liberalization holds up quite well to a critical reading of this literature. Most papers that find no effect of liberalization on real variables tell us nothing about the empirical validity of the theory because they do not really test it. This paper explains why it is that most studies do not really address the theory they set out to test. It also discusses what is necessary to test the theory and examines papers that have done so. Studies that actually test the theory show that liberalization has significant effects on the cost of capital, investment, and economic growth.

scholarly journals The new structural economics: patient capital as a comparative advantage

2017 ◽  
Vol 1 (1) ◽  
pp. 4 ◽  
Author(s):  
Justin Yifu Lin ◽  
Yan Wang
Keyword(s):  
Comparative Advantage ◽  
World Economy ◽  
Institutional Factors ◽  
Capital Account ◽  
Public Infrastructure ◽  
Short Term ◽  
Capital Account Liberalization ◽  
The World ◽  
New Structural Economics

The world economy needs a growth-lifting strategy, and infrastructure financing seems to hold the key. Based on the New Structural Economics (Lin, 2010; 2012) we discuss the heterogeneity of capital focusing on the long-term versus short-term orientation (STO). Traditional neoliberalism assumes that capital is homogenous, complete capital account liberalization is “beneficial”.However, previous studies have found evidence of long-term orientation (LTO) in the culture of many Asian economies (Hofstede, 1991). In this exploratory paper, we suggest that the LTO can be considered a special endowment which, under certain circumstances, can be developed into a comparative advantage (CA) in patient capital. If these countries can turn their latent CA into arevealed CA in patient capital, and develop the ability to “package” profitable and non-profitable projects in meaningful ways, they would have a “revealed” competitive advantage in infrastructure financing. The ability to “package” public infrastructure and private services is one of the key institutional factors for success in overseas cooperation.

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