Xuemei YUAN, Yanqi YU. Is Foreign Capital Flows Management Policy Effective?——Empirical Analysis of 71 Emerging and Developing Economic Entities[J]. JOURNAL OF UNIVERSITY OF JINAN (Social Science Edition), 2019,29(4):114-130.
Xuemei YUAN, Yanqi YU. Is Foreign Capital Flows Management Policy Effective?——Empirical Analysis of 71 Emerging and Developing Economic Entities[J]. JOURNAL OF UNIVERSITY OF JINAN (Social Science Edition), 2019,29(4):114-130.DOI:
foreign capital flows management including macro-prudential management attracts attention of international community. Effectiveness of these policies need further prove. This paper examines foreign capital flows management policies’ influence on financial stability indicators such as capital flow
exchange rate
credit and loan based on data of 71 emerging and developing economic entities from 2000 to 2017 applying Propensity Score Matching. The empirical results show that most foreign capital flows management policies have remarkable influence on reducing FDI flows
restraining effective exchange rate appreciation and reducing the share of short-term foreign debt. Meanwhile
some policies can accelerate effective exchange rate appreciation and domestic credit expansion. The influence of foreign capital flows management policies last from 1 year to 3 years generally. Effectiveness of these policies strengthens in Turbulent period of international macroeconomic situation. Therefore
foreign capital flows management policies should become supplement tool to macroeconomic policy. Emerging and developing economic entities should maintain the smooth operation of financial system through strengthening monitoring of cross-border capital flows
accelerating economic restructuring and constructing healthier financial markets.