We test the effect of China’s capital account openness on the fragility of bank system.We find capital account openness existing negative effect on bank system’s fragility,which obviously differ from former theory a...We test the effect of China’s capital account openness on the fragility of bank system.We find capital account openness existing negative effect on bank system’s fragility,which obviously differ from former theory and empirical research.The reasons can attribute to the gradual openness and preference to FDI.which make China avoid“over-borrowing syndrome”which is common in development countries after the openness of capital account.展开更多
文摘We test the effect of China’s capital account openness on the fragility of bank system.We find capital account openness existing negative effect on bank system’s fragility,which obviously differ from former theory and empirical research.The reasons can attribute to the gradual openness and preference to FDI.which make China avoid“over-borrowing syndrome”which is common in development countries after the openness of capital account.
