The International Financial Integration of China and India

Lane, Philip R. ; Schmukler, Sergio L.

World Bank, Washington, DC

关键词: ACCOUNTABILITY;    ASSETS;    AUTONOMOUS MONETARY POLICY;    AUTONOMY;    BALANCE SHEET;   

DOI  :  10.1596/1813-9450-4132
RP-ID  :  WPS4132

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Three main features characterize theinternational financial integration of China and India.First, while only having a small global share ofprivately-held external assets and liabilities (with theexception of China's foreign direct investmentliabilities), these countries are large holders of officialreserves. Second, their international balance sheets arehighly asymmetric: both are "short equity, longdebt." Third, China and India have improved their netexternal positions over the past decade although, based ontheir income level, neoclassical models would predict themto be net borrowers. Domestic financial developments andpolicies seem essential in understanding these patterns ofintegration. These include financial liberalization andexchange rate policies, domestic financial sector policies,and the impact of financial reform on savings and investmentrates. Changes in these factors will affect theinternational financial integration of China and India(through shifts in capital flows and asset and liabilityholdings) and, consequently, the international financial system.