%0 Journal Article
%T Capital Control, Financial Depth and the Demand of Foreign Reserves: Evidence on 1994-2013 Data in China
%A Dianlei Lu
%A Zhixin Liu
%J Open Journal of Social Sciences
%P 6-11
%@ 2327-5960
%D 2014
%I Scientific Research Publishing
%R 10.4236/jss.2014.29002
%X <p class=\"MsoNormal\">
	<span lang=\"EN-US\">We combined foreign reserves,
capital control and financial depth with other economic variables in the same
model and discussed the factors that affect the demand of China¡¯s foreign
reserves. The results showed that 1) a considerable number of foreign reserves
are passively accumulated, for instance, stronger capital controls deeper
financial system will lower the demand of foreign reserves; 2) the ratio of Hot
Money/GDP is more significant than the FDI/GDP as a proxy of foreign reserves¡¯
protective demand.</span>
</p>
%K Foreign Reserves
%K Capital Controls
%K Financial Depth
%U http://www.scirp.org/journal/PaperInformation.aspx?PaperID=49093