by Huanjie Wang
Abstract
This paper examines the level of capital mobility in China during
Jan. 1999 to Apr. 2006 by estimating the covered interest rate differentials
during this time period. This study was made possible by data
from the fairly newly established offshore RMB Nondeliverable Forward
market. It concludes that China had not been enjoying perfect
capital mobility during the sample period of this study. Furthermore,
capital controls were mainly placed on capital outflow before 2003
and inflow afterward. Comparison with previous research confirms
the assertion.
Professor Stephanie Schmitt-Grohe, Faculty Advisor
JEL Codes: F32, N25, O53,
