TITLE:
The Causes and Effects of China’s Double Surplus of Balance of Payments—Based on the Study of FDI Inflow in 1993-2012
AUTHORS:
Botao Zhang
KEYWORDS:
Structure of Balance of Payments, Double Surplus, FDI
JOURNAL NAME:
Open Journal of Social Sciences,
Vol.5 No.5,
May
9,
2017
ABSTRACT: Double surplus in balance
of payments is a surplus of both current account and capital and financial
account during the same period. In recent years, substantial scholars have made
a thorough study about this topic, but there still exists a big gap between
theory and real economy. The existing literatures pay little attention to the
current China’s surplus structure, especially from the perspective of FDI inflows. This paper examines the general situation of
China’s double surplus in international balance of payments and analyzes
its causes. Empirical research on the representative factors that influence the
China’s balance of payments suggests foreign direct investment de facto contributes a large portion to the overall surplus in the balance of payments. It
accordingly makes further research on the role of FDI presenting how FDI
affects double surplus of China’s balance of payments and its influences on
China’s economy. This paper is organized as follows: Chapter 1 is an introduction; Chapter 2 is general
introduction of China’s balance of payments; Chapter 3 is the empirical
analysis; Chapter 4 is the mechanism analysis of FDI; Chapter 5 is domestic
influence of China’s international balance of payments surplus; Chapter 6 is
about policy recommendations for China’s double surplus.