Work

Dimensions of financial integration in Greater China: money markets, banks and policy effects

Year: 2005

Type: article

Abstract: The financial linkages between the People's Republic of China (hereafter ‘China’) and the other Greater China economies of Hong Kong and Taiwan are assessed, and compared against those of China with Singapore, Japan and the United States. For both sets of links, there is evidence thatex postuncovered interest parity tends to hold over longer periods, and the magnitude of the parity deviations is shrinking over time. The deviations depend upon the extent of capital controls, and in certain cases, exchange rate volatility. However, while the money markets of China are increasingly linked to money markets in the rest of the world, our empirical results suggest that the banking sector—the main source of capital for Chinese firms—remains insulated. Copyright © 2005 John Wiley & Sons, Ltd.

Source: International Journal of Finance & Economics

DOI: 10.1002/ijfe.264

Authors: Yin‐Wong Cheung, Menzie D. Chinn, Eiji Fujii

Institutions: University of California, Santa Cruz, National Bureau of Economic Research, University of Wisconsin–Madison, University of Tsukuba

Language: English

Topic: Global Financial Crisis and Policies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: bronze

Funder: University of California, Santa Cruz

OpenAlex ID: W2116843666

FWCI: 3.418

Cites: 32

Cited by: 29

Related to: 10