摘要
This study presents the possible determinants of capital flight in China. We present a Johansen cointegration model based on the dynamic econometric theory. By the co-integration model, we get appropriate long-term relationship between capital and its determinants. The empirical results imply that the difference between domestic and foreign interest rate, the foreign debt as a percentage of GDP, the overvaluation of the exchange rate, the discrimination between native and foreign capital, financial control is the main economic forcing factors of capital flight.
