An Evaluation of the Impact of the China (Shanghai) Pilot Free Trade Zone (SPFTZ) / Daqing Yao, John Whalley.

Format:

Book

Author/Creator:

Yao, Daqing.

Contributor:

National Bureau of Economic Research.

Whalley, John.

Series:

Working Paper Series (National Bureau of Economic Research) no. w20901.

NBER working paper series no. w20901

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Evaluation of the Impact of the China

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2015.

Summary:

In this paper we present evidence as to the effects of the China (Shanghai) Pilot Free Trade Zone (SPFTZ) on China's capital controls. The start of the SPFTZ in September, 2013 was a trial to introduce a combination of exchange rate floating and capital account liberalization into China's macro policy mix. We employ three methods to test the SPFTZ's impact on capital controls: price spread tests between CNH and CNY, RMB yield gaps between onshore and offshore RMB markets, and Granger causalities among China's money supply and the foreign interest rates. All these tests give consistent results suggesting that the impact of China's capital controls is weaker since the SPFTZ.

Notes:

Print version record

January 2015.