Research on China's High Level Financial Openness from the Perspective of Financial Security
Financial openness,as an irreversible choice in China's modernization process,has long been a concern for both academics and policymakers in terms of how it can align with China's economic development while ensuring financial se-curity.This study extends the existing research by examining the various impacts of financial openness on financial security from a financial security perspective.This paper reviews the micro-mechanisms through which financial openness affects financial security and systematically analyzes its positive and negative impacts from multiple perspectives,while also engaging in theoretical discussions based on China's actual development situation.To empirically support this discussion,the paper selects 15 original indicators that re-flect the characteristics of the times and are representative of financial security.These indicators are scientifically processed,and a financial security index for China is constructed using factor analysis,followed by an assessment of the index.Subse-quently,the paper constructs an indicator system for China's actual financial openness based on capital stock and uses the TVP-VAR model to empirically test the overall and heterogeneous effects of financial openness on China's financial security.The study finds that,overall,financial openness is beneficial to financial security,while the inflow of hot money consis-tently has a negative impact on financial security.In terms of the direction,the opening of outbound investments has a notably positive effect on financial security.Although foreign capital inflows can contribute to economic growth,they also have varying levels of impact on financial security.Among these,foreign direct investment tends to have a positive impact,foreign debt in-vestment has a negative impact,and equity investment,traditionally considered the most volatile,has a neutral impact.Finally,the paper offers strategic recommendations for further high-level financial openness in China.In the long term,there should be continued guidance of foreign capital inflows,encouragement of long-term direct investment,restrictions on short-term debt investment,and expansion of channels and scale for outbound investments by domestic enterprises and resi-dents.In the short term,efforts should be focused on expanding cross-border securities investments in RMB and proactively es-tablishing onshore and offshore RMB financial centers.
Financial OpennessFinancial SecurityOversea InvestmentTVP-VAR Model
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万方数据
