Author(s)

Feng Qiu

Economic Institution, Jinan University, Guangzhou, China.

Based on the existing basis, this paper analyzes the short-term international working capital. In addition to considering the interest rate, exchange rate and asset price factors, it also incorporates the fluctuation risk factors of GDP for comprehensive consideration. This article uses the quarterly data of 2000Q1-2016Q3 to build a VAR model of quarterly data. The results show that Chinese short-term international capital flows are explained by their own changes to a large extent; among the four factors, exchange rate and asset price factors have the greatest impact, and arbitrage and DGP risk fluctuations have the weakest impact, indicating that investors are at the national level. Economic fluctuations and spreads are not sensitive, and the purpose of short-term international capital is to obtain the benefits of assets and exchange rates.

Short-Term International Capital Flows, Interest Rates, Exchange Rates, Asset Prices, GDP Risk Fluctuations, VAR

Qiu, F. (2019) Analysis of Chinese Short-Term International Capital Flow Capital Motivation. Modern Economy, 10, 1062-1071. doi: 10.4236/me.2019.103071.