The Empirical Analysis of Financial Development and the Composition of International Capital Flows
LIU Jian1,2,WANG You-xin3
1.University of International Business and Economy,Beijing 100029, China; 2.Bank of Communications,Shanghai 200336, China; 3.School of Economics, Nankai University, Tianjin 300071, China
Abstract The paper analyzes the size and the composition of international capital flows by gravity model. The empirical analysis shows that financial development plays an important role on the scale and the composition of international capital flows. With the improvement of financial development, the share of equity investment in the total investment is larger, and the share of bond investment is lower. In addition, the impact of financial development on different types of capital flows are different, with equity is most sensitive to financial development, followed by FDI, and then is bond investment.
LIU Jian,WANG Wei-Xin. The Empirical Analysis of Financial Development and the Composition of International Capital Flows. Economic Survey, 2013, 1(5): 0155.
2013, Vol. 1 
